BEAR – On Friday June 13, Governor Matt Meyer convened a wide-ranging roundtable at the Bear Public Library to confront the growing crisis of medical debt in Delaware. Joined by legislative leaders, national experts, state agency officials, and individuals personally impacted by medical debt, the discussion focused on the urgent need to protect Delawareans from the financial and emotional burdens of unpaid medical bills.

“Medical debt is unlike any other debt. It strikes in moments of crisis, not choice,” said Governor Meyer. “We are committed to real solutions, like removing medical debt from credit reports and eliminating existing debt for thousands of our neighbors, so that no one’s health crisis turns into a long-term financial burden.”

Governor Meyer strongly supports Senate Bill 156, sponsored by Senator Spiros Mantzavinos and Representative Kim Williams, which would prohibit medical debt from appearing on credit reports.

“Medical debt can be a debilitating financial burden for families across our state and nation, often forcing people to choose between lifesaving treatment and putting food on the table. That’s why I have worked for the past few years to introduce policies to alleviate the burdens of medical debt on our neighbors,” said Sen. Mantzavinos. “SB 156 helps to mitigate the negative, compounding effects of medical debt by ensuring that it cannot be used against someone in credit, employment, or housing decisions.”

The Consumer Financial Protection Bureau took action earlier this year to ban medical debt from credit reporting across the country, but a federal judge delayed implementation until at least the end of July. Congressional Republicans have also filed legislation to overturn the CFPB’s rule.

“People shouldn’t be unfairly punished for getting sick,” said Brad Lipton, former CFPB official and Senior Fellow at the Consumer Federation of America. “Medical debt isn’t a good predictor of credit risk, and including medical bills on credit reports just mucks up the system. Taking medical debt off consumer reports will help people qualify for mortgages, car loans, and small‑business financing they deserve, unlocking opportunity and stability for families.”

Medical debt affects more than 17% of Delawareans and disproportionately harms uninsured and low-income individuals, particularly Black and Latino families. Despite actions taken by national credit bureaus, millions remain burdened by opaque billing practices and aggressive collections.

“We are all just one injury, one diagnosis, or one car accident away from our entire world changing in just the blink of an eye. Every day, far too many Delaware families who should be able to focus on healing are instead forced to make impossible decisions to dig their way out of medical debt. The cost of surviving should not be suffering,” said House Speaker Melissa Minor-Brown. “I am ten toes down on reducing medical debt for our fellow Delawareans and am eager to support the ongoing efforts of Sen. Mantzavinos and Rep. Williams who have championed this issue in the legislature for many years now.”

According to the CFPB, Americans had about $88 billion in medical debt listed on their credit reports as of June 2021. In Delaware, 17% of people owed a total of $400 million to debt collectors, though that doesn’t include debt owed to providers, which is hard to estimate, and therefore does not reflect the true amount. A 2017 Census survey found that nearly 1 in 5 people had medical bills they couldn’t fully pay that year, and a 2014 CFPB study said consumers are unlikely to know how much various medical services cost in advance, particularly those associated with accidents and emergencies.

“When Delawareans face serious illness or injury, the medical bills that follow can overwhelm their finances and put their entire livelihood at risk,” said Delaware Department of Health and Social Services Secretary Josette Manning. “Far too many families are forced to make heartbreaking choices — like whether to buy needed medicine or put food on the table. Lifting the burden of medical debt can change lives and help build a stronger, healthier Delaware for everyone.”

The roundtable also included insights from financial coaches and legal advocates who work daily with families in crisis. They shared deeply moving personal testimony from some of those families.

“Medical debt is a health issue, an economic justice issue, and a barrier to achieving race equity,” said Miriam Straus, Policy Advisor for Community Catalyst and a national expert on medical debt. “It forces people to delay care, skip vital treatment, and live with constant financial strain. Lawmakers must pass SB 156 and strengthen hospital financial assistance because no one should face a lifetime of debt simply for getting the care they need to live.”

For additional questions or to schedule an interview with Governor Matt Meyer, please email govcomm@delaware.gov.

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