Starting this month, there’s good news for the hundreds of thousands of Washingtonians who are struggling to pay their medical bills. Today, five percent of WA residents are being chased by medical debt collectors, with higher rates among communities of color. Many more WA residents remain uninsured or underinsured, with health insurance premiums and deductibles consuming an ever-greater share of income. Though health care prices continue to escalate, two new policies went into effect this month that will give WA residents some welcome relief. 

Effective July 1st, 4 million Washingtonians now qualify for free or discounted care at Washington hospitals as a result of legislation requested by Attorney General Bob Ferguson. The new law requires large hospital systems to provide more financial assistance to those who meet financial requirements. As a result, approximately half of all Washingtonians will be eligible for free or reduced-cost care at hospitals that represent approximately 80 percent of the licensed beds in the state. Learn more from the Attorney General. 

For Washingtonians whose medical debt has already gone to collections, another new policy started this month that also brings relief to consumers. Earlier this year, the three main nationwide credit reporting agencies (Equifax, Experian, and TransUnion) announced a change in the way medical debt will be reported on credit reports. Also effective on July 1st, medical debt that has been paid, but is still on consumer credit reports will be removed and the credit agencies will slow the process going forward of placing medical debt on credit reports. In the first half of 2023, medical bills less than $500 will be removed from credit reports altogether. Learn more from Community Catalyst.

NoHLA welcomes these developments, which will bring much-needed relief to WA residents while state policymakers work on broader solutions to the underlying drivers of health care prices.