SPRINGFIELD – Many residents in Illinois are struggling to keep up with their medical debt in the face of corporate greed. State Senator Graciela Guzmán has advanced legislation through the Senate to protect those burdened by health care debt from having a lien placed on their home during a health care debt collection.
“Housing and health care are human rights that Illinois must strive to protect and provide for its residents,” said Guzmán (D-Chicago). “While health care corporations make massive profits, they are attempting to threaten the homes of people who need treatment but cannot afford it. This practice cannot go on.”
This legislation came forward after the House sponsor heard from residents affected by the acquisition of St. Margaret’s Hospital in Peru by OSF HealthCare. After that acquisition, families saw more aggressive medical debt collection practices, including liens on homes for medical debts sometimes as low as $2,000.
Guzmán’s legislation would prohibit hospitals from placing liens on a person’s home during a health care debt collection action. According to the Illinois Coalition for Immigrant and Refugee Rights, Black and Hispanic adults, women, those with lower incomes, and the uninsured are the most likely to have health care debt. As of 2021, the Illinois Department of Healthcare and Family Services found that over 900,000 Illinoisans are uninsured.
“A lien creates a mark on a person’s public record, property rights and financial flexibility that cannot be easily undone,” said Guzmán. “This kind of extreme financial measure can restrict a person’s right to live where they wish and puts huge pressure and stress on a family. We cannot allow a health crisis to become a preventable housing stability crisis.”
House Bill 4461 passed the Senate and heads to the governor’s desk for final approval.
