Press Release: CSS Report Documents How New York Dramatically Cut Patients’ Medical Debt Burden

Press Release

CSS Report Documents How New York Dramatically Cut Patients' Medical Debt Burden

#EndMedicalDebt campaign led to a series of state laws regulating medical debt

In 2019, individual patient and survey data revealed a spike in aggressive medical debt collection strategies that led patients to worry about their fiscal security and cut back on necessary health care. In response, the Community Service Society of New York (CSS) launched the "#EndMedicalDebt" campaign - a statewide effort bringing together organizations representing diverse constituencies across the state and centered on three advocacy tactics: leveraging research to document and publicize medical debt; engaging hospital executives directly on their medical debt collection policies; and organizing at the grassroots level.

A new CSS report, The Campaign to End Medical Debt; How New York Dramatically Reduced Patients' Medical Debt Burden, describes the six-year campaign (2019-2025) and offers a model that can be replicated in other states to reform medical debt collection practices and reduce the number of medical debt lawsuits.

As a result of legislative reforms in response to the #EndMedicalDebt campaign, New York has observed:

• a 99.8 percent reduction in hospital lawsuits against patients, from 13,886 in 2019 to 105 in 2025, saving patients $36 million; and
• a 78 percent decrease in the amount of medical debt on credit reports, with the portion of New Yorkers with medical debt dropping from 7.6 percent in 2018 to 1.7 percent in 2023 (the most recent data available), leading to approximately $241-$337 million in medical debt removed from patients' credit reports.

This dramatic decline in medical debt collection activities is the result of the #EndMedicalDebt campaign's close work with state officials, including Governor Hochul and the New York State Legislature, leading to the enactment of eight new state laws regulating medical debt that:

• Cut the medical debt statute limitations (2020)
• Reduced the consumer judgement interest rate from nine to two percent (2021)
• Banned the practices of placing liens on patients' homes and garnishing patients' wages (2022)
• Banned facility fees for preventative care (2023)
• Improved hospital price and quality data transparency (2023)
• Mandated a uniform hospital financial assistance form (2023)
• Banned hospitals from reporting medical debt to credit reporting bureaus and barred those credit bureaus from reporting medical debt on consumer credit reports (2024)
• Expanded eligibility for hospital financial assistance and barred hospitals from suing low-income patients for medical debt (2024)

"The Community Service Society's research shows that the policies we've won in Albany have reduced medical debt and lawsuits significantly," said State Senator Gustavo Rivera, Chair of the Senate Health Committee. "We will continue pushing for policies that protect New Yorkers from financial ruin just because they need medical care until we have eliminated the absurdity of medical debt entirely."

"The Campaign to End Medical Debt demonstrates how effective messaging, collaboration, and grassroots organizing can bring impactful change, said Assemblymember Amy Paulin, Chair of the Assembly Health Committee. "The Community Service Society's report shows these reforms have already benefited New York patients, which is more important now than ever, as many New Yorkers are set to lose coverage as a result of federal health cuts. I commend the campaign's efforts and look forward to working with partners to build on this progress."

"The catalyst for this campaign were the thousands of patients who contacted our Help Line afraid and feeling helpless as hospital and healthcare providers came after them using predatory collection practices that often were in direct contradiction to their financial assistance policy," said David R. Jones, CSS President and CEO. "We know medical debt disproportionately affects low-income Black and Latino communities, creating financial hardships and discouraging people from accessing healthcare services. As a result of this campaign, and the legislative reforms that came out of it, we've helped significantly reduce the burden of medical debt on New York healthcare consumers."

"Governor Hochul and the New York State Legislature showed tremendous leadership in tackling the state's medical debt crisis. Because of their efforts, New York is a national leader on medical debt reform," said Elisabeth Benjamin, CSS Vice President of Health Initiatives and co-author of the report. "The elements of the campaign to end medical debt in New York are replicable by other state policymakers, advocates and patients. We hope it can serve as a model for how states can protect consumers from predatory medical debt collection practices that can lead to unnecessary financial ruin and hardship."

"The #EndMedicalDebt campaign has succeeded in reducing medical debt burden and eliminating the most harmful collection practices of liens, wage garnishments, and credit reporting," said Mia Wagner, CSS Director of Health Policy and co-author of the report. "The conservative estimate of up to $337 million removed from New Yorkers' credit reports is based on available data from 2023 when New York's credit reporting ban for medical debt was being implemented-it is likely that even more New Yorkers have benefited in the past two years."

Ending aggressive medical debt collection practices is an increasingly important policy option, particularly in light of federal cuts to healthcare programs that put more Americans at risk of losing their health coverage.

The Community Service Society of New York (CSS) has worked with and for New Yorkers since 1843 to promote economic opportunity and champion an equitable city and state. We power change through a strategic combination of research, services, and advocacy to make New York more livable for people facing economic insecurity. By expanding access to health care, affordable housing, employment opportunities, debt assistance, and more, we make a tangible difference in the lives of millions. Join us at https://www.cssny.org.

Issues Covered

Latest News

CSS Report Documents How New York Dramatically Cut Patients' Medical Debt Burden

The City's Rent Hike Plan for Voucher Holders Will Backfire

Health Initiatives RFP: Keep New York Covered (KNYC) 2026

More News