Texas House Bill HB4234

Texas 2023 - 88th Regular

• Filed: 3/8/23

Caption

Relating to establishing an account to create a program to pay off certain outstanding debts attributed to medical expenses; making an appropriation.

Impact

If enacted, HB 4234 would have a significant impact on state laws concerning financial assistance programs. The bill appropriates $100 million from the general revenue fund to cover the costs associated with this initiative. This program could provide necessary relief for low-income Texans struggling with medical debts, thereby potentially reducing bankruptcies and improving overall financial stability for affected individuals. By creating an official account dedicated to this purpose, the state would prioritize healthcare-related debt relief in its budget planning.

Summary

House Bill 4234 seeks to establish a Medical Debts Repayment Account in Texas, with the goal of paying off outstanding medical debts for individuals who meet specific criteria. The bill proposes that the comptroller create a program that aims to relieve the financial burden of medical expenses for state residents whose household income is at or below 400% of the federal poverty level or those whose medical debts exceed 5% of their annual income. The state plans to work alongside hospitals and debt collection agencies to acquire these debts at reduced costs, thus facilitating the repayment process.

Sentiment

The sentiment surrounding the bill appears generally positive, particularly among advocates for financial and healthcare reform. Proponents emphasize the necessity of providing assistance to those most vulnerable to high medical costs, especially as healthcare expenses continue to rise. However, there may also be concerns regarding the effectiveness of the program and how it will be implemented, especially regarding the negotiations between the state and debt collectors, which can vary widely across the healthcare industry.

Contention

Key points of contention may arise around the bill's eligibility criteria and the management of the funds. Critics may question whether the thresholds set for income and debt levels are adequate to target those in the greatest need. Additionally, concerns could emerge regarding the transparency of the program and whether it truly addresses the root issues of rising medical costs or simply provides a temporary solution to a deeper systemic issue related to healthcare affordability.

Texas Constitutional Statutes Affected

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: New Section