Bill > SB1040

This bill requires the Office of Wellness and Resilience (a state government office) to conduct a comprehensive study on establishing a medical debt forgiveness program for Hawaii residents. The study will focus on the cost and feasibility of forgiving medical debt for households that either have an income at or below 400% of the federal poverty level or have medical debt that represents 5% or more of their household income. In conducting the study, the office must review experiences from other states with similar programs and consult with nonprofit healthcare systems and organizations specializing in medical debt elimination. The bill acknowledges the significant impact of medical debt on individuals, noting that it can lead to delayed healthcare, employment and housing challenges, and increased mental stress. The study aims to explore a potential program that would purchase medical debt from healthcare providers at a significantly reduced rate (approximately 0.01% of the total debt value) and then eliminate that debt for qualifying residents. The office is required to submit a report with findings and recommendations to the legislature before the 2026 legislative session, with the bill itself set to take effect on December 31, 2050.

Budget and Finance, Business and Industry, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1040&year=2026