[Congressional Record Volume 151, Number 28 (Thursday, March 10, 2005)]
[Extensions of Remarks]
[Page E418]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCING THE MEDICAL BILLS INTEREST RATE RELIEF ACT OF 2005

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                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                        Thursday, March 10, 2005

  Mr. HASTINGS of Florida. Mr. Speaker, I rise today to introduce the 
Medical Bills Interest Rate Relief Act, a bill to protect Americans 
from going bankrupt due to high medical costs. Many families and 
individuals are forced deep into debt by the combination of large 
medical bills and excessively high interest rates.
  The journal Health Affairs recently reported that over two million 
people are financially ruined by health care costs every year, and 
these debtors are 42 percent more likely than other debtors to 
experience lapses in coverage. In fact, many of those bankrupted are 
middle class and have insurance, and so do not qualify for additional 
assistance.
  A constituent of mine from Margate, Florida was faced with just this 
situation. He was unable to fully meet the repayment schedule demanded 
by the hospital. Because he had insurance, he was also unable to 
qualify for further assistance. The hospital reported him to his credit 
bureau, which then raised his interest rate to an astronomical level, 
pushing his financial stability to the very edge of bankruptcy.
  My constituent is currently selling his home in order to avoid 
bankruptcy. This is simply unfair. My constituent did not overspend on 
luxury gifts, buy a fancy car, or take extended vacations. Instead, his 
family was slammed by an unpredictable and unpreventable medical 
catastrophe that was no fault of their own. There should be a level of 
protection for them and the millions of other Americans who struggle to 
make ends meet.
  Mr. Speaker, credit card issuers tie interest rates to the timely 
repayment of debt. But many Americans, such as my constituent, are 
faced with sudden, extremely high medical expenses that simply cannot 
be repaid within the same constraints as ordinary expenses. Thus, their 
credit card interest rates may rise dramatically, resulting in an even 
more burdensome financial situation.

  My legislation alleviates this problem by requiring credit card 
companies to maintain the lowest interest rates possible for persons 
repaying medical care costs, based on the customers' previous credit 
rating prior to incurring those costs. My bill further protects 
patients and families by prohibiting hospitals from reporting for 5 
years patients who cannot meet the mandated repayment schedule, 
provided that those patients demonstrate good faith by maintaining a 
repayment of 20 percent of their medical expenses. This ensures that 
patients receive some level of protection from imminent financial 
disaster while hospitals are also assured of recovering debt.
  The extraordinarily high cost of medical care is an enormous burden 
on American families. Unfortunately, many medical expenses are 
unforeseen, and the expenses associated with emergency catastrophic 
care can literally destroy a family's finances. Our constituents should 
never have to choose between the health and life of a loved one and the 
financial constraints of medical care.
  I urge my colleagues to support this bill to protect all Americans 
from the crushing burden of medical costs.

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