An effort to lower interest rates for the more than 700,000 Coloradans with medical debt passed its final vote in the state legislature Thursday – now only needing the governor’s signature to become law. 

If signed, Senate Bill 93 would cap interest rates at 3% for medical debt, down from the current 8%.

The bill would also pause debt collections when a patient is appealing their coverage; require debt collectors to verify the total debt owed and provide a payment plan at a patient’s request; and, require health care providers to provide a cost estimate for medical services before the services are provided at a patient’s request. 

“Medical debt is crushing our country. It’s crushing our state,” said bill sponsor Rep. Mike Weissman, D-Aurora. “By lowering the interest rate to 3%, we give people a little bit more space to not get further behind than they already are.”

Medical debt is the leading cause of bankruptcy nationwide. In Colorado, over 12% of residents are in collections for medical debt and the state’s combined medical debt totals $1.3 billion, according to a 2022 report from the federal Consumer Financial Protection Bureau. 

The House passed the bill in a 43-20 vote on Thursday, following the Senate’s 26-9 approval last month. 

While the bill had bipartisan support in the Senate, it instead received bipartisan opposition in the House. All Republicans and one Democrat voted against the bill Thursday. Rep. Bob Marshall of Highlands Ranch was the sole Democrat to join Republicans in voting “no” on the bill. 

Opponents raised concerns that lowering interest rates on medical debt would take away the incentive for patients to pay the debt off, leaving medical providers on the hook for the expenses.

Rep. Brandi Bradley, a physical therapist, said she feels that the bill is “picking on” the medical community and will push medical professionals out of the state.

“It’s right and good to help those in need. That’s what we’re supposed to do … but here, we are not providing for them. We are forcing medical service providers and professionals like me to provide for them,” said Bradley, R-Littleton. “It is not right to slap the people that got us through this pandemic and nursed our loved ones back to health, to do this to them.”

Other opponents said capping interest rates for medical debt is unfair to those with other kinds of debt. 

“We’re picking winners and losers,” said Rep. Lisa Frizell, R-Castle Rock. “It doesn’t feel like there’s any rhyme or reason. … Why does medical debt get special treatment?” 

Proponents defended lowering interest rates for medical debt, saying it is inherently different than debt incurred from buying a house or a car, since medical debt is often not acquired voluntarily. 

During a committee hearing on the bill, many Colorado residents testified about accumulating tens to hundreds of thousands of dollars in debt due to life-threatening medical emergencies, leading some to declare bankruptcy or lose their homes. 

Among Coloradans who have problems paying off medical debt, 37.2% are unable to pay for necessities like food, heat or rent, according to a 2017 survey by the Colorado Health Institute. The survey also found that 46.2% have accumulated credit card debt for medical expenses, 15.7% took out a loan and 5.4% declared bankruptcy. 

“Medical debt is different. It is exactly different,” said bill sponsor Rep. Kyle Brown, D-Louisville. “That is the reason we are bringing this bill. No one should go bankrupt because they get sick or injured.” 

The bill will be sent to Gov. Jared Polis for consideration in the coming days. If approved by Polis, the bill will take effect immediately upon signage.