Senate defeats proposal to create medical‑debt relief account (SB195)

Senators considered and ultimately rejected Senate Bill 195 on Feb. 21, a proposal to create a medical‑debt relief restricted account that would accept state appropriations and private funds to acquire and retire personal medical debt that has gone to collections.

Senator Bluhund presented the bill and described its purpose: to give consumers, particularly in rural and underrepresented communities, an avenue to clear medical debt that can lead to bankruptcies and poor credit outcomes. "This bill creates the medical debt relief restricted account, which will accept state appropriations and private funds to acquire and retire personal medical debt that has gone on to collections," the sponsor said.

Supporters argued the program would provide targeted relief for Utahns burdened by medical debt and that fiscal impacts were manageable; the sponsor noted a small fiscal note covered by the receiving agency. Opponents outnumbered supporters on the floor and the bill failed on a roll call (9 yea, 13 nay, 7 absent) and will be filed.

What would have happened: The account would have accepted a combination of public and private funds to purchase and retire medical debts in collections and direct limited state resources to reduce borrower burdens. The transcript records the sponsor’s presentation and the roll call result; it does not include next steps for reintroduction.

Attribution: Sponsor remarks are taken from the Senate floor transcript.