Several states have recently enacted laws to help alleviate the burden of medical debt for individuals who are low-income and who are struggling to pay these bills. At least 10 states, including Maine, Maryland, New Mexico, and Connecticut have passed with provisions in them that heavily affect healthcare providers and third-party debt collection agencies. These provisions include requirements for hospitals to give financial assistance to patients with lower incomes and to limit the aggressive collection practices used to collect on these debts.
According to a recent study of credit reports from Transunion, medical debt is the largest source of consumer debt currently in collections. In fact, when compared to all other types of debt, medical bills surpass both credit card and utilities in terms of other debt being collected.