Michigan Senate Passes Bills to Cap Medical Debt Interest

Legislation aims to protect residents from aggressive medical debt collection practices

Mar. 12, 2026 at 2:04pm

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The Michigan Senate has passed a bipartisan package of bills to address the state's medical debt crisis. The legislation, led by Sen. Sarah Anthony and Sen. Jonathan Lindsey, would set clearer standards for hospital financial assistance programs and place new limits on how medical debt can be collected, including capping interest and late fees at 3% annually. The bills now move to the Michigan House for further consideration.

Why it matters

Medical debt remains a significant financial burden for many Michigan families, with nearly one-third of working-age adults carrying medical or dental debt. The proposed legislation aims to provide relief and protect residents from aggressive debt collection practices that can lead to long-term financial harm, such as damaged credit, foreclosure, and wage garnishment.

The details

The legislative package includes two sets of bills. Senate Bills 449-451 focus on standardizing financial assistance programs at nonprofit hospitals and preventing medical debt from being included in consumer credit reports. Senate Bills 701-702 target the collection side, capping interest and late fees, prohibiting liens and home foreclosures, and preventing the deferral or denial of emergency or urgent services due to outstanding medical debt.

  • On March 11, 2026, the Michigan Senate passed the bipartisan package of bills.
  • The legislation was introduced last summer and is now moving to the Michigan House for further consideration.

The players

Sen. Sarah Anthony

A Democratic senator from Lansing who has been a leader on the issue of medical debt and helped introduce the legislative package.

Sen. Jonathan Lindsey

A Republican senator from Coldwater who partnered with Sen. Anthony on the bipartisan bills.

Michigan Senate

The upper chamber of the Michigan legislature that passed the bipartisan package of bills.

Michigan House

The lower chamber of the Michigan legislature that will now consider the bills passed by the Senate.

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What they’re saying

“When medical debt can follow someone around for the rest of their life — hurting their ability to buy a home, forcing them to forgo essential expenses like food and rent, and keeping them from getting back on their feet — we know the system is broken.”

— Sen. Sarah Anthony

“The Senate passing these bills marks a significant first step in delivering real relief for our state's medical debt crisis. Right now, too many Michiganders are burdened by medical debt with limited opportunities to escape it.”

— Sen. Jonathan Lindsey

What’s next

The bills now move to the Michigan House for further consideration and potential passage.

The takeaway

This legislation represents a bipartisan effort to provide relief and protection for Michigan residents struggling with the burden of medical debt, which can have long-lasting financial consequences beyond the initial health care needs.