LANSING, Mich. (Michigan News Source) – Two bills aimed at protecting Michigan residents from the harsh financial consequences of medical debt have advanced out of committee and are now headed to the House floor for consideration.

The legislation, known as the Medical Debt Protection Act, would place new limits on how hospitals and medical providers can collect unpaid medical bills.

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Under the proposed bills, hospitals would be prohibited from charging late fees or interest on medical debt for the first 90 days after a bill is issued. After that period, any interest charged would be capped at 3% annually, significantly lower than rates often associated with other types of debt.

The legislation would also restrict certain aggressive collection practices tied to medical bills. If passed, it would become illegal to arrest someone, foreclose on their property or garnish their wages because of medical debt.

Supporters of the bills say the changes are intended to give patients breathing room after unexpected medical expenses and prevent families from facing severe financial penalties tied to health care costs.

With committee approval secured, the Medical Debt Protection Act now moves to the Michigan House floor, where lawmakers will debate and vote on the measures.