In a recent government meeting, advocates for medical debt reform rallied support for Assembly Bill 2297, which aims to prohibit the use of home liens for collecting unpaid medical bills from financially qualified patients. Linda Wei from the Western Center on Law and Poverty and Christine Smith from Health Access California presented compelling testimonies highlighting the urgent need for this legislation.

Wei shared the story of Humberto Cruz, who faced devastating financial consequences due to medical debt incurred from his child's birth and subsequent NICU stay. Despite having employer-sponsored insurance, the Cruz family was left with a staggering $19,200 bill after being misinformed about financial assistance options. This led to a default judgment against them, forcing the sale of their home and resulting in further financial strain.

Smith emphasized that property liens are frequently used to collect medical debts, with over 140 such liens recorded in Los Angeles County alone in 2023. AB 2297 seeks to align financial assistance processes with current Medi-Cal eligibility rules, simplify applications, and ensure hospitals review financial assistance eligibility at any time, eliminating application deadlines.

The bill received broad support from various organizations, including the ACLU and AFSCME California, highlighting its potential to alleviate the burden of medical debt on low and moderate-income Californians. However, the California Hospital Association expressed concerns and remains in an \"opposed unless amended\" position, indicating ongoing discussions are necessary to address their issues.

The committee ultimately moved to pass the bill, reflecting a growing recognition of the need for reforms to protect vulnerable residents from the financial repercussions of medical debt. The meeting underscored the critical intersection of healthcare access and financial security, as advocates continue to push for legislative changes that prioritize patient welfare.