Gov. Youngkin: Intervene to protect Virginians from predatory debt collection practices

Here is the reality: Most Americans with cancer who report struggling to pay for medical expenses or navigating medical debt are insured.

These are regular people who have done everything “right” — either they signed up for their Medicare or Medicaid coverage, held onto jobs with employer-sponsored plans or were self-insured on the marketplace. Then, they got cancer and the bills started rolling in without any end in sight. Soon, the bill collectors and credit agencies came knocking. These are nurses, educators, and single parents — people who weren’t just battling cancer but debt collectors, too.

For many Virginia families dealing with a serious illness, this is not hypothetical; it is their everyday struggle. Recent reports indicate that as many as half of Virginia adults are currently navigating medical debt or have done so within the past five years. We can’t expect our neighbors, at their sickest and most vulnerable, to live under the weight of such physical and financial stress, forced to choose between lifesaving treatments or keeping a roof over their families’ head and also answer persistent, threatening calls from creditors.

Thankfully, in Virginia, we’re seeing lawmakers take decisive action to tackle the mounting issue of medical debt and alleviate its heavy burden on families. In 2024, Gov. Glenn Youngkin signed legislation to prohibit credit-reporting for medical debt, which safeguards patients’ credit scores and enables greater financial stability. This year, the General Assembly passed House Bill 1725 sponsored by Republicans, a bipartisan bill that aims to provide further protections to patients by shielding them from unfair medical debt collection practices.

Youngkin has the opportunity to formalize these protections for patients, and it’s the hope of many Virginians that he does. The proposal, as passed by the General Assembly, seeks to make interest rates and accrual less punitive for Virginians dealing with medical debt, prohibit wage garnishment for patients who qualify for financial assistance and protect patients’ financial assets.

The hope is that, by reducing the negative consequences of medical debt through this legislation, Virginia can promote healthier families, more stable communities and a stronger Commonwealth. By signing the legislation as-is, Youngkin can address the unending harms of medical debt that lead families into financial toxicity.

Since its introduction at the start of the legislative session, HB 1725 has earned sweeping support across medical, public health and patient advocacy groups. Those within and who represent the cancer community have, for years, been sounding the alarm on the cascading harms of medical debt on patients and families, citing results from a recent survey of cancer patients and survivors that paints a troubling picture. The survey found that nearly half of cancer patients and survivors reported having medical debt related to their illness. Among them, 30% have faced credit problems and 8% have lost their homes or been forced into unsafe living conditions. Furthermore, 46% of patients and survivors with cancer-related medical debt felt harassed by creditors and debt collectors, who commonly threaten credit scores as an intimidation tactic.

This is especially troubling for younger Americans who, according to recent reports, are being diagnosed with cancer at increasingly younger ages. In many cases, these diagnoses are coming before these younger patients have a strong financial footing. HB 1725 would provide Virginia with an opportunity to promote the financial future and mobility of younger Virginians, which could entice young families and graduates of our state’s great universities to stay, establish roots and build a life here.

Affordability is important to Youngkin. A veto on HB 1725 would run counter to his commitment to address Virginians’ high cost of living. 55% of state residents have experienced at least one health care affordability burden in the past year, making it even more important that the governor sign this legislation.

Youngkin has until the end of April to act, and Virginians cannot afford to lose momentum on this key issue. Inaction threatens to compound existing hardship and force more families out of our state or into the depths of financial ruin. Youngkin has the power to shift the reality of disease to one where patients can focus on the most important thing: fighting for their lives. Patients in Virginia are hopeful that he takes this opportunity to disentangle individuals’ physical health from their financial health.