Advocates, policy experts, and labor representatives have commended Assemblywoman Verlina Reynolds-Jackson, Senator Shirley Turner, sponsors, and the Assembly Financial Institutions and Insurance Committee for advancing the Louisa Carman Medical Debt Relief Act proposed by Governor Murphy.
The Act aims to shield New Jersey residents from various financial difficulties associated with medical debt. Key provisions include banning most medical debt from being reported to credit agencies, capping interest rates on medical debt at 3%, establishing public notification requirements for provider payment plans, prohibiting wage garnishment for patients below 600% of the Federal Poverty Level, and voiding reported medical debt except for medical credit card debt as a penalty to reporting entities.
These measures are intended to assist approximately 1.5 million New Jersey residents grappling with medical debt, 22% of whom are in collections. The issue also underscores racial and socio-economic disparities; 33% of residents with medical debt in collections belong to communities of color compared to 16% in white communities.
"There are significant benefits in this Act," said Laura Waddell, Health Care Program Director at New Jersey Citizen Action. "We are committed to working towards ensuring consumers have all the financial protection from medical debt they need."
Ernie Davis, Senior Director-Northeast Government Affairs at Leukemia and Lymphoma Society stated, "This bill goes a long way to protect blood cancer patients in New Jersey from the worst medical debt collection practices."
Beverly Brown Ruggia, Financial Justice Program Director at New Jersey Citizen Action remarked on supporting enforcement efforts by the Office of the Attorney General while calling on the Legislature to restore consumers' right to seek legal remedies against inappropriate reporting under the Fair Credit Reporting Act.
Renee Steinhagen, Executive Director of NJ Appleseed highlighted that "this bill requires providers to offer patients a reasonable payment plan capped at 3% of their monthly income over up to five years." She emphasized that proper implementation could prevent or reduce cases going into collections.
"Medical debt is a serious problem," noted Brittany Holom-Trundy, Ph.D., Senior Policy Analyst at New Jersey Policy Perspective (NJPP). She added that capping interest payments and banning credit report entries would prevent people’s lives from being disrupted due to medical bills.
Debbie White, RN and HPAE President acknowledged positive steps taken but stressed ongoing advocacy for stronger protections both state-wide and federally: “New Jersey has taken some positive steps in addressing this issue by passing the Louisa Carman Medical Debt Relief Act.”
Quinton Law from ACS CAN expressed optimism about future policy solutions: “Governor Murphy has the chance to ease the burden of medical debt on New Jerseyans,” he said. “Cancer patients and survivors across New Jersey are eager to build on this progress.”
