State lawmakers propose bill to help prevent bankruptcy from medical debt
Some people in Colorado are being forced into bankruptcy after they undergo life-saving procedures like chemotherapy or heart surgery. Now, state lawmakers have introduced a bill to cap interest rates on medical debt at 3%.
The legislation would also prohibit collection during an appeal of the debt, require collectors to provide itemized statements of the debt and require health care facilities to provide an estimate of the cost of a procedure ahead of time and cap the amount by which that cost can exceed the estimate.
"These are people maybe going through chronic health conditions and don't have the time and the energy to really sort this all out. We're trying to bring a little bit more transparency to the process and protect consumers both on the front end and on the back end," said Sen. Lisa Cutter, a Democrat representing Jefferson County.
Medical debt is the number one cause of bankruptcy in the U.S.
