For Immediate Release
Contact: Mike Roth 916-444-7170
State Senate Passes Patient Debt Prevention Act (AB 1312, Schiavo)
As federal cuts jeopardize health coverage and access for millions, health consumer and equity advocates urge Gov. Newsom to sign AB 1312 to prevent greater financial & health disasters for patients
SACRAMENTO, CA – Today the State Senate approved the Patient Debt Prevention Act, AB 1312. The bill, authored by Asm. Pilar Schiavo (D-Chatsworth) and backed by a coalition of health care consumer and health equity advocates, will prevent consumers from being saddled with debt they shouldn’t owe under current hospital financial assistance programs. It heads to Governor Newsom’s desk after a concurrence vote in the Assembly.
“People and in our state are already living under the weight of $10 billion in medical debt, and the fear of a bill you can’t afford is a primary reason people avoid getting care they need. Now, millions more families risk being crushed by debt as budget cuts from the federal administration threaten to destabilize health coverage for millions. The Patient Debt Prevention Act will ensure patients get the help they qualify for with their bills, not visits from debt collectors. This bill is an important step California can take to push back against the devastating health and financial consequences of HR1,” said Assemblywoman Schiavo.
More than one in three Californians reported medical debt in 2023, and the rate is even higher among Black, Latine, and Spanish-speaking Californians and those with low incomes. Many patients say they often struggle to afford basic needs, forcing them to skip or delay doctors’ appointments. According to state estimates, 3.4 million Californians could lose their health care coverage under the federal cuts, meaning even more people putting off care or leaving the hospital with unaffordable debt.
The Patient Debt Prevention Act is co-sponsored by the California Pan-Ethnic Health Network (CPEHN), Health Access California, Blood Cancer United, and Rising Communities.
“Trump and Congressional Republicans forced HR1 on California knowing it would result in more poor families facing debt collectors after an illness because they lost their health insurance. California can reduce this harm when Governor Newsom signs AB 1312,” said Kiran Savage-Sangwan, CPEHN Executive Director. “This bill makes standard what many hospitals are already doing to protect patients’ health: offer financial assistance before the bills pile up.”
“We thank our state legislature for protecting California families who are already carrying billions in medical debt, with the heaviest burden falling on vulnerable and low income communities of color. AB 1312 is a common-sense fix that makes sure hospitals screen patients for financial assistance up front—so people get the care they need without being chased by debt collectors later,” added Sejal Patel, Executive Director RC Foundation, Rising Communities. “As Washington threats put coverage for millions at risk, Governor Newsom can protect patients today by signing AB 1312 and choosing health over debt.”
“Californians are already facing crushing medical debt – and it’s about to get worse as cuts from Trump and Congressional Republican H.R. 1 hit families hard. Couple that with spiking premiums in Covered California due to Congressional inaction, and Californians are facing a health care cost and access crisis,” said Katie Van Deynze, Senior Policy and Legislative Advocate for Health Access California. “AB 1312 can help in this critical moment by ensuring that eligible patients are better connected with hospital financial assistance before they get a bill. Preventable hospital bills should not be forcing more low-income Californians further into debt. We applaud the State Senate for passing this bill, and implore Governor Newsom to sign the bill so California can take action as our federal government fails us.”
“No one should have to choose between getting care and going into debt. This bill will give Californians a fair shot at both health and financial security,” said Adam Zarrin, director of state government affairs for Blood Cancer United. “Patients are counting on Governor Newsom to sign the bill into law without delay.”
In adopting the Patient Debt Prevention Act, California will require all hospitals to screen patients who are uninsured, enrolled in Medi-Cal with cost-sharing, or enrolled in other means-tested programs, Covered California, or who may be experiencing homelessness. With the Patient Debt Prevention Act, California would also build on past consumer-protection legislation that prevents medical debt from being reported through credit bureaus.
The bill standardizes best practices for financial assistance already underway at more than 100 California hospitals including Adventist, Dignity Health, Kaiser, and Providence Hospitals. Several states including Oregon, Illinois, North Carolina, and Maryland already require hospitals to screen patients for financial assistance eligibility, and some require automatic discounts.
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About Asm. Pilar Schiavo
Assemblywoman Pilar Schiavo represents the 40th Assembly District, representing the Northwest San Fernando Valley and the Santa Clarita Valley.
About the California Pan Ethnic Health Network
The California Pan Ethnic Health Network brings together and mobilizes communities of color to advocate for public policies that advance health equity and improve health outcomes in our communities. Learn more at cpehn.org.
About Health Access California
Health Access California is statewide health care consumer advocacy coalition, working with a broad range of diverse organizations seeking affordable, equitable and quality health care for ALL Californians.
About Blood Cancer United®
Blood Cancer United® (formerly The Leukemia & Lymphoma Society) is the largest global nonprofit focused on blood cancer patient support, research, and advocacy. The organization’s mission is to cure blood cancer and improve the quality of life of all patients and their families. To achieve it, Blood Cancer United brings together a community of people—patients and their families, volunteers, healthcare providers, scientists, staff, partners, fundraisers, and philanthropists—who believe all blood cancer patients deserve longer, fuller lives. For support and to learn more, visit www.BloodCancerUnited.org.
About Rising Communities
Rising Communities (RC), formerly known as Community Health Councils (CHC), is a non-profit, community-based advocacy and policy organization dedicated to advancing social equity and systemic change in underserved communities. Founded in 1992, RC was created in response to growing health and healthcare disparities, with a mission to co-develop transformational social equity models that help communities thrive.