Committee advances pilot program allowing hospitals to buy and forgive medical debt

Standing Committee on Health · February 9, 2026

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Summary

Senate Bill S1857, which would amend the Public Health Law and Tax Law to establish a pilot hospital medical‑debt relief program in partnership with nonprofits (cited example: Chicago), was moved, seconded and sent to the finance committee after a voice vote.

The standing committee on health reported Senate Bill S1857 to the finance committee. The bill would amend the Public Health Law and the Tax Law to create a pilot program allowing hospitals to purchase and forgive medical debt in partnership with nonprofit organizations.

An introductory description on the record said the measure had been considered previously and is intended to enable hospitals, working with nonprofits, to acquire outstanding medical debt and forgive it, reducing financial burdens on patients. The presenter cited Chicago as a locality that has used similar arrangements.

Senator May moved the bill and Senator Wien seconded. The committee approved the measure by voice vote; the transcript records one member (identified as Galloway during the vote call) as opposing when prompted for opposed. The bill was forwarded to the finance committee for further consideration.

Next steps: referral to the finance committee; no roll‑call vote or funding details were recorded in the transcript.