Lawmakers in over a dozen states and the U.S. Congress are tackling medical debt, which has become a leading cause of personal bankruptcy
FILE - The gold dome of the Colorado State Capitol on March 23, 2023, in Denver. In Colorado, House lawmakers approved a measure Wednesday, April 12, that would lower the maximum interest rate for medical debt to 3%, require greater transparency in costs of treatment and prohibit debt collection during an appeals process. DENVER — — Cindy Powers was driven into bankruptcy by 19 life-saving abdominal operations.
In Colorado, House lawmakers approved a measure Wednesday that would lower the maximum interest rate for medical debt to 3%, require greater transparency in costs of treatment and prohibit debt collection during an appeals process. Powers’ family ended up owing $250,000 for the 19 life-saving abdominal surgeries. They declared bankruptcy in 2009, then the bank foreclosed on their home.
Castaneda, who was born with a congenital heart defect, found herself $200,000 in debt when she was 23 and had to have surgery. The debt tanked her credit score and, she said, forced her to rely on her emotionally abusive husband's credit.
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