Sen. London Lamar fights to eliminate medical debt, strengthen middle class

Two bills up for Senate Commerce & Labor Committee vote on March 4

NASHVILLE — Senate Democratic Caucus Chairwoman Sen. London Lamar (D-Memphis) is taking bold action to tackle Tennessee’s medical debt crisis with two key consumer protection bills.

Senate Bill 403 would eliminate medical debt for Tennesseans, while Senate Bill 402 would prohibit medical debt from being included on consumer credit reports. Both bills are scheduled for a vote on Tuesday, March 4 in the Senate Commerce & Labor Committee.

On average, 12% of adults in Tennessee are carrying medical debt, one of the highest rates of medical debt in the United States. And it’s not just an issue with families who have lost their health coverage. Many Tennesseans, even those with private health insurance, do not have enough liquid assets to meet co-pays, deductibles or out-of-pocket maximums.

Senate Bill 403: Erasing Medical Debt

Currently, Tennessee hospitals receive hundreds of millions in public funds to offset to cost of providing uncompensated care. In just the first quarter of this fiscal year, state taxpayers disbursed $153 million earmarked for charity care to 107 state hospitals.

This bill would ensure that hospitals accepting public funds for uncompensated care erase the same amount in patient medical debt — giving families financial relief and security.

“If a hospital takes public money, they should lift patient debt in return,” says Sen. 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.”

The sponsor of the House companion bill is Rep. Justin Jones (D-Nashville).

Senate Bill 402: Remove Medical Debt from Your Credit Report

Sen. Lamar’s Senate Bill 402 would ban the inclusion of medical debt on credit reports used by lenders.

“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.”

The Consumer Financial Protection Bureau has found that medical debts provide little predictive value to lenders about borrowers’ ability to repay other debts, and consumers frequently report receiving inaccurate bills or being asked to pay bills that should have been covered by insurance or financial assistance programs.

The sponsor of the House companion bill is Rep. Vincent Dixie (D-Nashville).

Both bills will be heard in the Senate Commerce & Labor Committee on March 4.