January 29, 2023

Governor Hochul Signs Legislation to Defend People with Health-related Debt

Governor Kathy Hochul today signed laws (S.6522A/A.7363A) to secure sufferers facing steep medical expenditures that can guide to wage garnishment or liens versus their house.

“No just one need to confront the menace of shedding their house or falling into additional personal debt right after looking for professional medical treatment,” Governor Hochul said. “I am very pleased to sign legislation right now that will end this harmful and predatory collection apply to help guard New Yorkers from these unfair penalties. With health care personal debt a load for much too quite a few, this is an significant move to tackle this essential concern.”

Legislation (S.6522A/A.7363A) amends the civil follow regulation and guidelines to prohibit health and fitness care companies from placing household liens on an individual’s primary home or garnishing wages to accumulate on health care personal debt. Governor Hochul outlined her aims to protect New York’s people and boost their economic wellness in her 2022 Point out of the State Address, which contains addressing health-related credit card debt and defending people from abusive and punitive tactics that lead to enhanced and undeserved fiscal stress.

Almost 50 % of American adults struggle to manage overall health care charges, and a lot more than 50,000 New Yorkers have been sued for medical credit card debt over the previous five several years this dilemma is most pervasive in Upstate New York. Earlier, hospitals or wellbeing treatment vendors had been equipped to impose and implement liens on a patient’s main home to satisfy a judgment in a clinical financial debt lawsuit, leading to housing instability and devastating money penalties for vulnerable New Yorkers.

Condition Senator Gustavo Rivera said, “New Yorkers should really not panic losing their residences or livelihoods as a consequence of seeking healthcare care, especially throughout such complicated money instances. I want to thank Governor Hochul for signing my monthly bill into legislation to guard New Yorkers from experiencing liens on their properties or wage garnishment by health-related institutions in their energy to collect professional medical personal debt. We will have to get the job done with each other to eradicate medical debt from our State and I am thrilled that we are taking this crucial initially move.”

Assemblymember Richard Gottfried said, “New Yorkers struggle with wellness care expenses even when they have insurance policies.  Men and women looking for treatment finish up with charges to address ever-rising out-of-pocket expenditures, which include high deductibles, copays and the several charges insurance coverage will not address. People’s properties and cash flow ought to not be threatened to fulfill health care debt. I thank Governor Hochul for signing S.6522A/A.7363A into law to support shield individuals from these egregious techniques. This monthly bill would not have been accomplished without the need of the tenacious hard get the job done and advocacy of Senator Rivera, other legislative colleagues and advocates, specifically the Neighborhood Company Modern society.”