2025 -- S 0664

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LC001711

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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J O I N T   R E S O L U T I O N

MAKING AN APPROPRIATION OF $1,000,000 FOR THE PURCHASE, CANCELLATION

AND FORGIVENESS OF MEDICAL DEBT

     Introduced By: Senators McKenney, Burke, Appollonio, and Euer

     Date Introduced: March 07, 2025

     Referred To: Senate Finance

     (General Treasurer)

     WHEREAS, Today, far too many Rhode Islanders remain saddled with medical debt; and

     WHEREAS, Unpaid medical bills pose a major impediment to financial security, and can

carry significant legal and psychological burdens that can follow our friends, our families, and

our neighbors for years; and

     WHEREAS, Through no fault of their own, an estimated five and two-tenths percent

(5.2%) of Rhode Islanders struggle under the weight of medical debt; and

     WHEREAS, Unlike most other types of debt, medical debt is usually unexpected and can

catch people without a financial plan; and

     WHEREAS, According to a report published by the Consumer Finance Protection

Bureau, “[t]wo-thirds of medical debts are the result of a one-time or short-term medical expense

arising from an acute medical need”; and

     WHEREAS, The same report found veterans, older adults, those with disabilities, and

minority populations are disproportionately impacted by medical debt relative to national

averages; and

     WHEREAS, Due to increasing patient cost-sharing, medical debt is common even among

households with health insurance; and

     WHEREAS, A report published by the Kaiser Family Foundation found that sixty-three

percent (63%) of households with medical debt report reducing expenses on food and clothing,

and forty-eight percent (48%) report using up all or most of their savings because of medical

debt; and

     WHEREAS, The same holds true in Rhode Island; and

     WHEREAS, The General Assembly created the Rhode Island Medical Relief Program

under § 35-4-21.1 for the purchase, cancellation and forgiveness of medical debt; and

     WHEREAS, Medical debt can be purchased for pennies on the dollar; and

     WHEREAS, Continued funding of the Medical Debt Relief Program will help end

medical debt in Rhode Island; now, therefore be it

     RESOLVED, That there is hereby appropriated, out of any money in the treasury not

otherwise appropriated for the fiscal year 2025-2026, the sum of one million dollars ($1,000,000)

for the continued purchase, cancellation and forgiveness of medical debt consistent with § 35-4-

21.1 and the state controller is hereby authorized and directed to draw their orders upon the

general treasurer for the payment of said sum, or so much thereof as may be from time to time

required, upon receipt of properly authenticated vouchers.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

J O I N T   R E S O L U T I O N

MAKING AN APPROPRIATION OF $1,000,000 FOR THE PURCHASE, CANCELLATION

AND FORGIVENESS OF MEDICAL DEBT

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     This resolution would authorize the appropriation of the sum of $1,000,000 for the

continued purchase, cancellation and forgiveness of medical debt consistent with § 35-4-21.1.

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