RELEASE: BERNIE SANDERS, RO KHANNA INTRODUCE BILL TO ELIMINATE MEDICAL DEBT

Washington, DC- Today, Senator Bernie Sanders (I-Vt) and Congressman Ro Khanna (D-Calif) along with Jeff Merkley (D-Ore.) and Rashida Tlaib (D-Mich.) introduced a bill to eliminate all of the $220 billion in medical debt held by millionsof Americans in this country, wipe it from credit reports, and drastically limit the accrual of future medical debt.

In the United States of America, there are currently over 100 million peopleholding some form of health care debt, and 20 millionpeople with unpaid medical bills of more than $250 specifically. That's nearly four in ten American adults reporting health care debt, and one out of every 12 American adults reporting significant debt. Women, Black Americans, and those living in rural areas and the South are hit the hardest. As a result of our health care system, one in threeBlack Americans have past due medical bills, as well as nearly halfof American women, and nearly halfof adults living in the South.

Unpaid medical bills can ruin credit scores and make it challenging to get a loan, take out a mortgage, or buy a car. Nearly 75 percent of adults in the United States say they are worried about being able to afford unexpected medical bills, according to the Kaiser Family Foundation. Nearly one out of every fourpeople say they have skipped medical treatment because of concerns about cost, including one in fiveadults with health insurance coverage.

The problem is only getting worse. Research from Yale and Stanfordrevealed a recent spike in hospitals, including non-profit and public hospitals, bringing medical debt lawsuits against patients over unpaid medical bills, disproportionately impacting Black and low-income patients and patients living in rural areas.

Canceling medical debt is a common sense position overwhelmingly supportedby the American public. That support is nonpartisan with 84 percentof Republicans in favor of canceling it. In fact, when polled on which types of debt Americans would like to see forgiven, two-thirds of Americanspointed to medical debt.

"This is the United States of America, the richest country in the history of the world. People in our country should not be going bankrupt because they got cancer and could not afford to pay their medical bills," Sanders said. "No one in America should face financial ruin because of the outrageous cost of an unexpected medical emergency or a hospital stay. The time has come to cancel all medical debt and guarantee health care to all as a human right, not a privilege."

"Our current health care system is bankrupting Americans. I've heard heartbreaking stories from constituents who have skipped doctor's appointments due to cost, who have lost loved ones because they couldn't afford their medication, and who aren't able to buy a house or get a job because of crippling medical debt," said Khanna. "I'm so proud to join Senator Sanders to cancel medical debt, wipe it from credit reports and reform our system going forward. This bill would transform the lives of millions of Americans and I couldn't ask for a better partner in the fight."

Said Merkley:"Patients should be able to get the care they need when facing illness or injury without fear of financial ruin. America's medical debt crisis continues to harm millions, and Congress must do all it can to relieve patients of this tremendous burden. Our Medical Debt Cancellation Act sets up a grant program to cancel patient medical debt. This bill is a common-sense step forward that will help families in Oregon and across the nation."

"No one chooses to get sick and seeking essential medical care should never keep families in poverty. Yet millions of people-disproportionately Black and/or disabled-are burdened with medical debt brought about by our broken health care system. Many families are forced to file for bankruptcy, while others struggle to access necessities like housing or transportation because of debt collections listed on their credit report. Imagine being denied housing while wrestling with a major medical issue and mounting bills. This is unconscionable. I am proud to stand with Representative Khanna and Senator Sanders in cancelling medical debt and bringing us one step closer to making health care a human right," said Tlaib.

Organizations endorsing the bill include: TheCenter for Health and Democracy, The Center for Popular Democracy, The Center for Economic and Policy Research, Just Care USA, Public Citizen, and Social Security Works.

Specifically, the Medical Debt Cancellation Act will:

• Amend the Fair Debt Collection Practices Act, making it illegal to collect medical debt incurred prior to the bill's enactment and creating a private right of action for patients.
• Amend the Fair Consumer Credit Reporting Act, effectively wiping medical debt from credit reports by preventing credit reporting agencies from reporting information related to debt that arose from medical expenses.
• Create a grant program in the Health Resources and Services Administrationto eliminate medical debt, prioritizing low-resource providers and underserved populations.
• Amend the Public Health Service Act, updating billing and debt collection requirements to limit the potential for future debt to be incurred.

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Congressman Khanna represents the 17th District of California, which covers communities in Silicon Valley. Visit his website at khanna.house.gov. Follow him on Facebook, Instagram and Twitter @RepRoKhanna.

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