PIERRE, S.D. (SDBA) — A bill prohibiting medical debt reporting to credit agencies failed in the South Dakota House Thursday on a 24-44 vote.
House Bill 1058 would have barred medical providers from reporting unpaid medical bills to credit reporting agencies, making violations a Class 2 misdemeanor.
“Medical debt is different than all other types of debt,” said Rep. Brian Mulder, R-Sioux Falls.
“Unlike student loans, mortgages, or when you buy a car, boat, or side-by-side, medical debt is something that you do not get to choose,” he said.
“I did chair this committee hearing… I think that this system of not reporting medical debt of any way to any consumer agency is going to be a problem for our financial system,” said Rep. Les Heinemann, R-Flandreau.
“When the decision on whether or not to save your child, when they need extreme life-saving procedures that maybe are not covered by insurance when you are given that choice, there is no choice,” Rep. Kadyn Wittman, D-Sioux Falls.
According to testimony, South Dakota ranks second among Great Plains states in per capita healthcare spending.
