‘Healthcare should heal, not bankrupt,’ TN lawmaker wants medical debt elimination

NASHVILLE, Tenn. (WSMV) - A Tennessee lawmaker is making a push to alleviate the state’s medical debt crisis with two new bills.

Sen. London Lamar (D-Memphis) introduced a bill that would eliminate medical debt for Tennesseans and another that would prohibit medical debt from being included on consumer credit reports.

Both bills are set to be discussed and voted in the Senate Commerce and Labor Committee on March 4.

“If a hospital takes public money, they should lift patient debt in return,” said Lamar. “Health care should heal, not bankrupt. This is about real relief for working people—helping families stay in their homes, invest in their futures, and live with dignity.”

Senate Bill 403 would require healthcare facilities to accept public funds for the losses due to providing uncompensated care for the amount of the patient’s outstanding debt. It would also require healthcare facilities to not seek judgment or take other legal action to collect from the debtor.

Meanwhile, Senate Bill 402 would prohibit healthcare providers from reporting a patient’s medical debt to a consumer reporting agency but would not prohibit a healthcare provider from reporting the debt to a debt collections agency.

“Tennesseans shouldn’t have their credit wrecked because they got sick or hurt in an accident,” Lamar said. “Medical debt isn’t like other kinds of debt—it shouldn’t keep families from buying homes, securing car loans, or renting apartments. This bill will protect Tennesseans from unfair financial harm.”