Bohac files Emergency Medical Credit Protection Act
Bill would financially help citizens with credit damage after emergency medical care
AUSTIN, TEXAS–To financially help citizens dragged into debt because of a life-threatening illness, State Rep. Dwayne Bohac (R-Houston) filed House Bill 864 today, also referred to as the Emergency Medical Credit Protection Act, to ensure that lines of credit and bank loans would remain attainable.
“Debt from emergency medical services is a unique type of debt, and Texans should no longer have to live a heartbeat away from bankruptcy,” Bohac said. “Even the most financially responsible consumer may not be able to handle the high costs of emergency medical care. The detrimental effect it can have on his or her credit adds insult to injury.”
A Harvard study published in Health Affairs – a journal of policies, opinions and research related to health – indicates that bills related to illnesses and medical care contributed to about half of all bankruptcy filings in 2001, affecting nearly 2.2 million Americans.
The Emergency Medical Credit Protection Act would prohibit lenders from denying loans or credit to individuals who have incurred debt as a result of medical treatment of life-threatening illnesses. Current law prohibits discrimination based on gender, race, religion, marital status and age. This bill includes medical debt from treatment of life-threatening illnesses as another category in which lenders could not deny individuals credit.
“Having a heart attack or stroke is not a choice, and a victim should not be punished as if they had voluntarily opened lines of credit and spent money frivolously,” Bohac said. “No one asks for a life-threatening emergency. In Texas, we don’t believe in kicking each other when we’re down,” Bohac said.
Many health insurance policies are anemic in the face of major medical emergencies and do not provide enough coverage to prevent severe debt and consequential credit damage, Bohac added. Debt and poor credit are then compounded by the fact that medical emergencies are often followed by the loss of jobs, income and insurance coverage.
“The shock of knowing you will spend the rest of your life in debt is enough to give a heart patient another heart attack,” Bohac said. “Even with health insurance, the bills for emergency care can be overwhelming and sometimes well beyond one’s ability to pay.”
Five other states, including Kansas, Nevada and California, have similar laws that protect individuals and families in ways similar to Bohac’s proposed bill.
Bohac stressed the difference between medical bills that result from life-saving treatment and elective procedures. “It’s time we come together to help Texans who, after suffering a catastrophic illness, need more than a staggering medical bill.”