To amend title 11, United States Code, to provide bankruptcy protections for medically distressed debtors, and for other purposes.

HR9670, introduced by Rep. Steve Cohen (D-TN-9) on July 14, 2026, seeks to amend Title 11 of the U.S. Code to provide bankruptcy protections for medically distressed debtors. The bill has been referred to the House Judiciary and Financial Services Committees, indicating a broad jurisdictional interest. At this early stage, no hearings or markups have occurred. The bill does not authorize any specific funding; it changes the legal treatment of medical debt in bankruptcy proceedings, making it easier for debtors to discharge such debt. This would reduce the recovery rate for creditors, including hospitals, healthcare providers, and financial institutions that extend credit for medical expenses. The money trail is not a direct appropriation but a change in creditor rights. For healthcare providers like HCA, which holds significant patient receivables (self-pay and uninsured), the bill could increase bad debt expense by an estimated $100-200 million annually, based on HCA's $65 billion revenue. For banks like JPMorgan Chase, which issues credit cards used for medical expenses, charge-offs on medical-related debt may rise by $50-100 million. Insurance companies like UnitedHealth Group are less directly affected, as their primary revenue is from premiums, not patient debt collection. The legislative timeline is uncertain—committee consideration, potential amendments, and floor votes could take months to years. There is no companion bill in the Senate yet. The bill's Democratic sponsor and current divided Congress suggest low probability of passage in this session. Structural winners are debtors; losers are creditors with medical debt exposure. No convergence signals were provided in the enrichment data, so this analysis stands alone.