Rep. Barbara Hernandez-Backed Investment Erases $1 Billion in Medical Debt for Illinoisans

AURORA, Ill. – Reforms backed by state Rep. Barbara Hernandez, D-Aurora, eliminating up to $1 billion in families’ medical bills and preventing past debt from hurting individuals’ financial
future, are now law.

“Vital medical procedures and lifesaving prescriptions are not optional, and many people in our community take on crimpling debt to get that care for themselves or their loved ones,” Hernandez
said. “With these recent measures, we are easing some of the financial burdens those families should never have had to bear.”

Hernandez helped pass House Bill 5290 and Senate Bill 2933, the first of which creates a pathway to pay off $1 billion in families’ medical debt at a fraction of the costs, and the second of which makes medical debt ineligible on credit reports. Outstanding medical debt can be purchase for a small percentage of the sum, clearing $1 billion in debt cost just $10 million.

In another example of Illinois playing a leading role nationwide, similar measures are currently being evaluated at the federal level.

“Ensuring every person in our community has affordable healthcare is a focus for me. However, we cannot neglect those who are already facing the punishing effects of an unfair medical
system,” Hernandez said. “Relieving debt like this will be a long-term necessity as we continue the vital work of cutting the costs of good healthcare.”