Unpaid medical debt? Michigan may soon limit how creditors can come after it

January 31, 2026

Michigan state senators are considering bipartisan legislation aimed at reforming how medical debt is collected from patients. The proposed two-bill package would restrict medical debt collection practices and prevent medical debt from appearing on credit reports, responding to concerns that approximately 700,000 Michigan residents currently struggle with medical debt. While the legislation has broad support and is tied to companion bills in the state House, it faces opposition from the Consumer Data Industry Association, which argues federal law preempts state action.

Who is affected

Leah Ciolek and other Lansing residents who have experienced medical debt
Approximately 700,000 Michiganders currently struggling with medical debt
Nearly 210,000 Michiganders whose medical debt was forgiven through the state's partnership with Undue Medical Debt
More than 100 million Americans nationally who owe a combined $220 billion in medical debt
Health care facilities and medical debt providers who collect costs from patients
Michigan community hospitals represented by the Michigan Health and Hospital Association

What action is being taken

The state Senate Finance, Insurance and Consumer Protection Committee is considering Senate Bills 701 and 702
State senators are reviewing the bipartisan legislative package during committee hearings
The Michigan Health and Hospital Association is reviewing the package and engaging with legislators
Gov. Gretchen Whitmer's administration is forgiving over $144 million in medical debt through a partnership with the nonprofit Undue Medical Debt

Why it matters

This legislation addresses a widespread systemic problem where patients who seek necessary medical care end up with devastating debt that damages their credit, increases borrowing costs, and delays major life milestones. Medical debt affects hundreds of thousands of Michigan residents and represents a failure of the healthcare system rather than individual financial irresponsibility. The proposed reforms would protect vulnerable populations from having unexpected medical emergencies ruin their livelihoods while still allowing legitimate debt collection, potentially providing crucial financial protection to those who cannot avoid seeking medical care.

What's next

No explicit next steps stated in the article (the senators did not vote on the bills during Wednesday's committee hearing, and it remains uncertain whether the Republican-led House will advance the legislation).

Read full article from source: bridgedetroit.com