MEDIA RELEASE
Wed., April 1, 2026
Contact: Marissa Hallo, marissa.hallo@centerforhealthprogress.org, Priya Telang, ptelang@cohealthinitiative.org
Medical Debt Bill Killed by House Committee; Action Decried by Patients, Providers, and Consumer Groups
DENVER – Even though more than one in three adults have delayed healthcare out of fear of financial ruin due to unknown costs, and medical debt is responsible for nearly 60% of bankruptcies, a Colorado House committee killed a crucial bill addressing the issue last night.
With a vote of 8 to 5, only Representatives Leider, Feret, McCormick, English and Gilchrist voted in support.
In Colorado, medical debt has led to wage garnishments, home liens, and devastating financial hardship, often for modest bills that are a result of emergencies or billing errors. Between 2022 and 2024, Colorado courts approved approximately 14,000 wage garnishments each year for unpaid medical bills, many involving low-income patients or those whose care should have been covered by Medicaid.
“The Medical Debt Protection Act offers commonsense protections already adopted by more conservative states like Texas, Florida, and South Carolina,” said Dana Kennedy, Co-Executive Director at Center for Health Progress. “Preventing harmful practices like wage garnishment won’t solve every systemic issue, but it will help families stay housed, keep up with basic expenses, and avoid cascading financial crises.”
HB26-1267, after thorough stakeholder engagement and amendments, would have banned creditors from wage garnishment, prohibited seizure of bank accounts with $5,000 or less, and limited the timeline for initiating collection actions to 3 years.
With impending federal and state Medicaid cuts, as well as massive premium spikes on the ACA market, more people than ever are losing or being pushed off health coverage. HB26-1267 would have made important strides to ensure that needed medical care and the compounding effects of rising health care costs do not continue to have devastating impacts on the finances and well-being of people across Colorado.
“Our phone was ringing non-stop from debt collectors,” said Jim Powers, a Greeley resident. “Most of the debt was from bills that the health system failed to file claims with insurance for. This was their $175,000 mistake that we were stuck with. That was not our fault, and it cost us everything, including our home. To our lawmakers: you were elected to represent the people, not the medical profiteers. If you have not been affected by medical debt collections, feel fortunate today. Medical debt collection is an equal opportunity offender, and it will impact everyone in the future if it isn’t reigned in today.”
Matt Guerrieri, a pediatrician who testified in support of HB26-1267, said, “My clinic has made the intentional decision not to send families to collections because participating in a system that risks financial ruin for our patients is not aligned with our values. On top of that, the revenue that returns to the practice is negligible. It is not worth the harm to patients. Today, lawmakers had a chance to align their votes with the commitments they made to their constituents and to demonstrate that, even within the limitations of our current system, they will not stand by while low-income communities are pushed deeper into crisis.”
“At a time when health care costs are rising, and more folks are getting pushed out of health coverage, this bill would have protected consumers from downstream effects of high hospital prices,” said Sophia Hennessy, Lead Policy and Research Coordinator at Colorado Consumer Health Initiative. “Getting sick shouldn’t cost families everything. Nobody should lose their financial safety because of an accident. Our legislature had the opportunity to protect consumers from predatory medical debt collection practices, and they should have taken it.”
CHP and CCHI thank Senators Jodeh and Weissman and Representatives Joseph and Mabrey for their consumer advocacy in medical debt.
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