Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Medical Debt topic
No spam. Unsubscribe anytime.
Senate passes bill capping interest on medical debt at 1% after heated debate over rural hospitals
Summary
The Washington State Senate passed Engrossed Substitute Senate Bill 5,993 on Feb. 5, 2026, capping interest on medical debt at 1%. Senators debated risks to rural hospitals and rejected an amendment that would have set higher differential rates for small and large systems.
The Washington State Senate voted Feb. 5, 2026, to pass Engrossed Substitute Senate Bill 5,993, which caps interest on medical debt at 1%. The roll call recorded 209 yes, 19 no and 1 excused, and the bill was declared passed.
Why it matters: Sponsor Senator Emily Alvarado said the cap is aimed at giving families breathing room while they recover from illness and manage bills. "We cap interest on medical debt at 1%," she told her colleagues, arguing that high interest worsens economic harm for people already facing health crises.
What the bill does: The enacted measure limits interest on medical debt to 1% (text as read on the floor). Amendments addressed implementation details: amendment 0-540 removed retroactive application and set an effective date of Jan. 1, 2027; amendment 0-537 made technical clarifications. An amendment (0-549) that would have set differential interest — "for smaller hospitals up to 4% interest and our larger conglomerates at 2%" — failed on a roll call after extended debate.
Major arguments: Supporters said the bill reduces an often crippling financial penalty and aligns Washington with states taking steps on medical debt. Senator Alvarado cited that "1 in 5 Washingtonians has medical debt" and framed the measure as targeted relief. Opponents, including Senator Wagner, warned the measure could shift costs onto hospitals and threaten rural facilities; Wagner characterized his amendment as a compromise that "helps save our rural and smaller hospitals." Senator Short and others repeatedly stressed rural hospital viability and urged caution about measures that could imperil small providers.
Votes and procedure: Before final passage the Senate adopted amendment 0-540 (removing retroactivity; effective 01/01/2027) by voice vote, rejected amendment 0-549 (differential rates) on a roll call, and later adopted technical amendment 0-537. The final passage roll call was recorded as 209 yes, 19 no, 1 excused.
Next steps: The bill was declared passed and its title will be the title of the act. The bill text as read on the floor and any effective dates beyond the adopted Jan. 1, 2027 prospective application should be checked in the enrolled bill for implementation details and the official effective date.
