Rep. Gabe Vasquez Introduces Solution to Protect New Mexicans from Crushing Medical Debt

WASHINGTON, D.C.- On February 12, 2026, U.S. Representative Gabe Vasquez (NM-02)re-introduced his Patient Debt Relief Act, a commonsense solution to help protect the one in 11 New Mexican adultswho are burdened by medical debt after a health emergency.

Over 20 million peoplein the U.S. struggle with medical debt - including 140,000 New Mexicans - and a growing number of hardworking Americans are incurring medical debtdue to rising health care coststriggered by Congressional Republicans' cuts to programs like Medicaid and the Affordable Care Act enhanced premium tax credits.

Currently, there are no federal protections for American patients dealing with medical debt. With the Patient Debt Relief Act, Rep. Vasquez is closing that gap to help protect patients from corporate exploitation, garnished wages, and home foreclosures as they seek to get back on their feet after health issues.

"All it takes is one health crisis to turn a family's life upside down, with medical debt piling up, collectors calling, and the threat of losing their home or paycheck. These problems will only get worse with the health care cuts in the Republican tax law, which will drive up health care costs and force New Mexicans off insurance and into the emergency room when they are critically ill," said Rep. Vasquez. "No hardworking New Mexican should have to carry that burden after getting sick or injured. I'm pushing this solution to protect patients and stand up to corporate greed in our health care system."

The Patient Debt Relief Actestablishes a grant program operated by the Department of Health and Human Services (HHS) to allow nonprofits to purchase medical debt for individuals whose medical debt exceeds 5 percent of their adjusted gross income or whose household income is below 400 percent of the federal poverty level.

The bill, which is endorsed by Community Catalyst, the Autoimmune Association, the New Mexico Center on Law and Poverty, and the National Consumer Law Center, also:

• Requires hospitals to provide affordable repayment options before referring patients to debt collectors;
• Prohibits hospitals and collection agencies from foreclosing on homes or garnishing wages to collect medical debt, and;
• Requires annual audits by HHS to ensure hospitals comply with these protections.

Communities of color, women, and low-income families disproportionately carry the burden of medical debt, and many patients report falling into collections due to insurance issues, billing disputes, or aggressive actions by third-party debt collectors. Medical debt also worsens health outcomes for many by disincentivizing routine, preventative care and repeat visits to the same provider due to patient concerns about collections.

"Gabe Vasquez is a champion for patients," said Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ). "No one should lose sleep at night over fears of medical debt, and this legislation is particularly important now as millions of Americans are expected to lose their health insurance as a result of Republicans' Big Ugly Bill. I'm grateful to Congressman Vasquez for his leadership on the Patient Debt Relief Act and look forward to continuing to work together to protect Americans against the scourge of medical debt."

"Medical debt is both a health and economic justice crisis that places an unfair burden on families and communities across the country. More than 100 million people in the United States carry medical debt, including many who are insured, and Black and Latino communities are disproportionately harmed because of longstanding inequities in our health system and economy," said Michelle Sternthal, Interim Senior Director of Policy and Strategy and Director of Government Affairs at Community Catalyst. "No one should have to choose between getting essential care and falling deeper into debt. We applaud Representative Vasquez for introducing legislation that addresses key drivers of medical debt by improving access to financial assistance and prohibiting harmful practices like wage garnishment and placing liens on homes."

"The Autoimmune Association, which advocates for more than 50 million Americans, is pleased to support the Patient Debt Relief Act," said Molly Murray, President and CEO, Autoimmune Association."Almost a third of adults in America are in debt because of medical or dental bills. Affordability of medical care is a critical concern for individuals living with an autoimmune disease. Patients with chronic conditions should not have to worry about losing their homes or having their wages garnished because our health care system has let them slip through the cracks. We appreciate Congressman Vasquez's unwavering leadership on this issue."

"Every year, thousands of patients in New Mexico and beyond face harsh actions for medical debt-losing portions of their paychecks, facing liens on their homes and seeing their credit destroyed-despite hospitals receiving substantial public support," said Abuko D. Estrada, Healthcare Director at the New Mexico Center on Law and Poverty. "We applaud Congressman Vasquez's introduction of the Patient Debt Relief Act, which will help protect patients with low-incomes from punitive collection practices and ensure hospitals uphold their public responsibility."

"People who owe money for prior medical care shouldn't have to worry about losing their homes or having their wages seized," said National Consumer Law Center Senior Attorney April Kuehnhoff."This bill would provide commonsense national protections for the millions of families struggling with medical bills."

Representatives Melanie Stansbury (NM-01), Raul Ruiz, M.D. (CA-25), Kathy Castor (FL-14), Shri Thanedar (MI-13), Yvette Clarke (NY-09), Kim Schrier (WA-08), Robert Garcia (CA-42), Nanette Diaz Barragán (CA-44), Greg Landsman (OH-01), Maxwell Frost (FL-10), Eleanor Holmes Norton (DC-00), Angie Craig (MN-02), Jesus G. "Chuy" Garcia (IL-04), Lateefah Simon (CA-12), Steven Horsford (NV-04), Dan Goldman (NY-10), and Suzan DelBene (WA-1) joined Congressman Vasquez in introducing this legislation.

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