Michigan Legislature Advances Comprehensive Healthcare Package Addressing Medical Debt, Liability Reform, and Workforce Shortages

Senate Passes Bipartisan Bills Tackling Medical Debt Collection

The Michigan Senate has approved a comprehensive package of healthcare legislation aimed at addressing some of the state's most pressing medical and legal challenges. The bipartisan effort includes measures to reform medical debt collection, restore liability protections for property owners, encourage organ donation, and expand healthcare workforce options.

Medical Debt Relief Reaches Senate Floor

Senate Bills 701 and 702, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), passed the Senate Finance Committee and now advance to the full Senate for consideration. The bills address medical debt, which state officials estimate affects approximately 700,000 Michiganders.

The legislation would create guidelines for nonprofit financial assistance programs that hospitals are required to offer. Additionally, the bills regulate how and when debt can be collected through several key provisions:

• Removing medical debt from credit reports
• Capping interest and late fees at 3% annually
• Prohibiting property liens and foreclosures on debt collection
• Prohibiting wage garnishments for those who qualify for assistance
• Banning providers from requiring payment before administering emergency or urgent services

"People should not be punished for getting the care they need and deserve," Anthony said. "Medical debt is the leading cause of bankruptcy in Michigan, and we need to give a lifeline to those crushed under these expenses."

The bills cite data showing nearly one-third of U.S. adults carry debt from medical or dental bills, with almost 40% reporting having to cut back on essentials like food, rent, and heat due to medical debt.

The legislation is tied to an identical package in the House of Representatives, House Bills 5254 and 5255, meaning all four bills must pass for the package to become law.

Liability Reform Protects Property Owners

The House Judiciary Committee approved House Bill 4582, sponsored by Rep. Jerry Neyer (R-Shepherd), which would restore what he calls common-sense liability protections for property owners. The bill establishes a new Premises Liability Act that codifies the long-standing "open and obvious" doctrine into state law.

The legislation responds to recent Michigan Supreme Court decisions in Kandil-Elsayed v. F & E Oil, Inc. and Pinsky v. Kroger Co. of Michigan, which shifted the open and obvious doctrine from a complete legal defense to merely one factor considered in liability cases.

Neyer's bill clarifies that property owners generally do not have a duty to protect against hazards that are open and obvious, while still allowing claims to proceed when dangerous conditions are effectively unavoidable or pose an unusually high risk of severe harm. The bill also prevents individuals injured while committing crimes such as breaking and entering from suing property owners.

"Most people understand a simple rule: if a danger is obvious, you should avoid it," Neyer said. "For decades, Michigan law recognized that same common-sense principle. Recent court decisions took that clarity away, creating uncertainty that is driving up lawsuits and insurance costs for businesses and property owners across our state."

The bill now advances to the Michigan Senate for consideration.

Organ Donation Incentives Gain Senate Approval

The Senate Health Policy Committee unanimously approved Senate Bill 301, sponsored by Sen. Joe Bellino (R-Monroe). The legislation would create a tax credit for employers whose employees take time off with full pay to serve as living organ donors.

The bill aims to address the shortage of organ donors in Michigan and reduce financial barriers for workers who become donors. By providing tax incentives to employers, the legislation encourages businesses to support their employees during the donation and recovery process.

Bellino introduced the legislation after becoming a living kidney donor himself, a personal experience that motivated his support for organ donation legislation. "One of the greatest deterrents to living organ donation is the fear of financial hardship and loss of income," Bellino noted.

Healthcare Workforce Expansion Proposal

The House Health Policy Committee took testimony on House Bill 4832, sponsored by Rep. Dave Prestin (R-Cedar River). The legislation would create state licensure for anesthesiologist assistants to help address healthcare workforce shortages, particularly in rural areas.

Prestin's bill would establish a rigorous certification process requiring accredited higher education, certification by the National Commission of Anesthesiologist Assistants, and Advanced Cardiac Life Support certification. The legislation would require anesthesiologist assistants to continue operating under the direct supervision and authority of licensed anesthesiologists.

The Michigan Health and Hospital Association, Michigan State Medical Society, and Michigan Society of Anesthesiologists have all expressed support for the legislation. Currently, 18 other states have licensed anesthesiologist assistants, including Indiana, Ohio, and Wisconsin.

"If passed, Michigan would join other states that have recognized these highly trained professionals," said a spokesperson for the Michigan Society of Anesthesiologists.

Committee Activity and Next Steps

These bills represent significant bipartisan efforts across multiple Michigan legislative committees. The medical debt package and premises liability reform now await Senate consideration, while the organ donation tax credit and anesthesiologist assistant licensure bills move toward full chamber votes.

The comprehensive nature of these healthcare proposals demonstrates the Legislature's focus on addressing both immediate concerns like medical debt and longer-term challenges such as healthcare workforce shortages. Whether the Republican-led House will approve the full medical debt package remains to be seen, as House Speaker Matt Hall, R-Richland Township, has vowed to pass only a limited number of bills during this legislative term.

As these bills continue their journey through the legislative process, stakeholders from across Michigan's healthcare community will continue to monitor developments and engage with lawmakers on opportunities to improve healthcare affordability and access.