CCLP testifies in support of medical debt protections

CCLP testifies in support of medical debt protections

by Bethany Pray, Esq.| Apr 7, 2026

Health, Legislative Updates, Public Benefits, Research and Policy Analysis, Testimony

On Tuesday, March 31, 2026, Bethany Pray, Chief Legal and Policy Director at CCLP, provided testimony in support of House Bill 26-1267, Limitations on Collection Actions for Medical Debt. The bill would have increased medical debt protections for Coloradans. Unfortunately, the bill was postponed indefinitely in the House Health & Human Services Committee.

Madam Chair & Members of the Committee,

My name is Bethany Pray and I'm Chief Legal and Policy Officer at the Colorado Center on Law and Policy, a statewide anti-poverty organization that advances the rights of all Coloradans. I'm asking for your support today on HB26-1267. This policy, with the strike-below, bars only those collection methods that are most destructive to a household's economic security and wellbeing, and that are here termed "extraordinary."

Many providers never pursue extraordinary collections. Those who do-in recent history, that's primarily nonprofit hospitals and UCHealth-can and should use routes to reimbursement that are more humane and support patients' health. One such route is Hospital Discounted Care (HDC)[1], which requires screening for public programs for uninsured households, and provides a structure for manageable payment plans.

Unfortunately, too many patients never know what they qualify for. State data shows that screening data was not submitted or a final determination was unavailable for more than 150,000 patients in the last reported year. That's a lot of potentially eligible Colorado patients falling through the cracks. How many ended up in collections, or having wages garnished? When wages are garnished, chances are good, according to ADP data, that they had household income between $20,000 and $60,000. These are not rich folks.

We want HDC to work better for patients and hospitals, and that's why CCLP and other organizations came to the table and collaborated with the hospital association on SB24-116, to help hospitals enroll patients more quickly in Medicaid.

If screening was universal, or even close to universal, I might be persuaded that there are circumstances where these aggressive methods are needed. But we're 150,000 patients away from universal screening.

Because of the One Big Beautiful Bill Act, we face, as a state, the specter of tens of thousands of people shut off from coverage. Sending people to collections, garnishing wages, having attorneys tack on fees and court costs that cause debt to balloon-that is NOT the way to go. Enrollment in public programs and making best efforts to get people into payment plans: that is what is going to work for Colorado.

**********

[1] https://hcpf.colorado.gov/hospital-discounted-care

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