Rep. Craig Introduces Legislation to Ease the Burden of Medical Debt on Minnesotans

WASHINGTON, DC – Today, U.S. Representative Angie Craig joined Rep. Gabe Vasquez (NM-02) in introducing legislation to ease the burden of medical debt on Minnesotans by protecting individuals from predatory debt collection practices and requiring hospitals to offer more manageable repayment options.

The Patient Debt Relief Act would establish a grant program under the Department of Health and Human Services (HHS) to allow nonprofit organizations to purchase medical debt from hospitals. This program would be available to those whose medical debt exceeds 5 percent of their income and those whose household income is below 400 percent of the federal poverty level. The bill would also require hospitals to provide affordable repayment options and prohibit hospitals and collection agencies from foreclosing on homes or seizing wages in order to collect medical debt.

“It’s absolutely ridiculous that in America, folks are being forced to choose between putting food on the table and paying their medical bills – and in the worst cases, debt collectors are going after patients who are just trying to get back on their feet,” said Rep. Craig. “It’s about time we offer working folks some relief from crippling medical debt and prevent companies from exploiting sick Minnesotans.”  

More than 20 million people in the U.S., and hundreds of thousands in Minnesota alone, struggle with medical debt. This number is only expected to increase as the One Big Beautiful Bill Act takes effect.

More than 143,000 Minnesotans received their health coverage through MNSure at the end of 2025, and of those, about 62% relied on the Affordable Care Act premium tax credits. When the tax credits expired at the end of last year, 90,000 Minnesotans saw their health care premiums increase an average of $177 per month and 20,000 Minnesotans were expected to lose access to coverage completely.

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