Bill > S01857

This bill establishes a three-year pilot hospital medical debt relief program in New York State designed to help residents struggling with medical expenses. The program will be administered by the state commissioner, who will contract with a not-for-profit organization to identify and cancel medical debt for eligible residents. To qualify, residents must live in the state, have a household income at or below 400% of the federal poverty guidelines (or medical debt equaling at least 5% of their household income), and have outstanding hospital-related medical debt. The not-for-profit organization will work directly with hospitals to purchase or receive donated medical debt, which will then be cancelled. Priority will be given to residents with debts over 18 months old or living in low-income zip codes. The organization must provide notification to residents whose debt is cancelled and ensure the debt is removed from their credit report. Additionally, the organization will be required to submit an annual public report detailing the program's impact, including the amount of debt discharged, number of residents helped, and demographic information. The bill also includes a tax provision to ensure that debt cancellation is not considered taxable income for recipients. The program is set to take effect 180 days after becoming law, with the goal of providing meaningful financial relief to New Yorkers burdened by medical debt.

Budget and Finance, Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/S1857