Resident, Advocates Respond to D.C. Council’s Medical Debt Reform

July 7, 2026

The D.C. Council unanimously passed the Medical Debt Mitigation Amendment Act of 2025, which requires healthcare facilities to offer payment plans to low-income patients and prohibits aggressive debt collection practices like wage garnishment, home liens, and credit reporting. The legislation was inspired by cases like Dorothy Paul's, a Ward 6 resident on Social Security who was unexpectedly billed $2,400 for hearing aids after being told they would be covered, causing her severe anxiety and delaying needed repairs. Tzedek DC, a public interest legal center that helped Paul and conducted research showing one in ten D.C. residents have unpaid medical bills, played a key role in shaping the legislation alongside Councilmember Christina Henderson.

Who is affected

Dorothy Paul, a Ward 6 resident receiving only Social Security income who was billed $2,400 for hearing aids
More than 62,000 District residents who previously had $42 million in medical debt cancelled
At least 1 in 10 D.C. residents with unpaid medical bills
Black residents, mothers, and people with disabilities who are disproportionately affected by medical debt
90% of Tzedek DC's clients who are Black residents living in Wards 7 and 8
Low-income patients seeking healthcare at D.C. healthcare facilities
Healthcare facilities including MedStar Washington Hospital Center and members of the DC Hospital Association
Stephen B. Jefferson Sr., who struggled with debt while fighting cancer for over a decade

What action is being taken

Tzedek DC is promoting and coordinating more than 150 events this year about the council's medical debt reform
Stephen B. Jefferson Sr. is tabling and talking to the community about the program to combat medical debt
DC Health and the D.C. Office of the Attorney General are being granted enforcement powers through the legislation

Why it matters

This legislation matters because medical debt disproportionately affects Black residents at twice the rate of white residents, creating significant health equity impacts. Medical debt causes delays in necessary care, worsens chronic conditions, and increases long-term healthcare costs for the community. The debt also appears on credit reports, making it difficult for residents to apply for housing, employment, and other lines of credit. The law provides consumer protections going forward, prevents exploitation of vulnerable communities through predatory medical credit cards, and ensures patients receive cost transparency before treatment. By requiring healthcare facilities to offer payment plans and prohibiting aggressive collection practices, the legislation addresses a systemic problem that has left thousands of D.C. residents burdened by healthcare costs they cannot afford.

What's next

The legislation must become law (awaiting final approval)
DC Health will need to improve information sharing with the Office of the Attorney General
Healthcare facilities will need to implement the new requirements for providing good faith cost estimates, screening patients for financial assistance eligibility, and offering payment plans
Enforcement by DC Health and the D.C. Office of the Attorney General will begin once the legislation becomes law

Read full article from source: The Washington Informer