The Predatory Debt Collection Act, which would put a cap on interest rates for medical debt, collected over 500,000 signatures in its quest to reach the ballot.
Healthcare Rising Arizona, with the support of the Fairness Project, cleared a significant hurdle in the pursuit of placing a measure on the November ballot to curb harmful medical debt collection practices in the state.
The Predatory Debt Collection Act cleared 500,000 signatures, easily surpassing the requirement of 237,645 signatures needed to qualify for the election, giving the campaign serious legs in its aim to protect patients and oppose abusive creditors.
The signatures for the Predatory Debt Collection Act must now be validated by the Arizona secretary of state and county recorders to reach the ballot.
Along with placing a cap on interest rates for medical debt, the proposed measure would shield individuals' assets from creditors.
The Fairness Project and its partners have previously led successful initiatives to fight predatory lending, with ballot campaigns won in Nebraska in 2020 and in Colorado in 2018. In addition to Healthcare Rising Arizona, the Fairness Project is also striving to pass a measure in Michigan this year.
"No one should have to declare bankruptcy, be harassed by debt collectors, or lose their home because
they sought treatment for an illness or injury. This is a matter of basic economic justice," Fairness Project executive director Kelly Hall said in a statement. "If passed, this ballot measure will provide direct relief to Arizona families whose lives are upended by medical debt. It will also help to ensure people don’t avoid getting care they need out of fear of going into debt — something that is essential while we are still in a pandemic.
"Fairness Project has a record of supporting successful ballot measures in several states to protect borrowers from predatory lending, increase people’s access to health care, and put more money in people’s pockets — and Arizona is next."
Medical debt is an issue that is affecting patients all across the nation. According to a study by Kaiser Family Foundation, four in 10 adults currently have some sort of medical debt. Of those, one in eight (12%) say they owe at least $10,000.
Jay Asser is the contributing editor for strategy at HealthLeaders.