Patient Debt Relief Act

The Patient Debt Relief Act (HR7478) was introduced in the House of Representatives on February 10, 2026, by Rep. Vasquez and 18 cosponsors. It has been referred to the Committee on Energy and Commerce and the Committee on Ways and Means. This bill seeks to amend the Social Security Act to establish new standards for financial assistance and medical debt collection for hospitals participating in the Medicare program, with an effective date of January 1, 2028. It also proposes a grant program for medical debt relief under the Public Health Service Act. The bill is currently in early committee stages, indicating a long legislative path ahead. The bill text specifies that hospitals failing to comply with the new financial assistance and debt collection requirements would be subject to civil monetary penalties up to $1,000,000 for each instance of noncompliance. While the bill establishes a grant program for medical debt relief, it does not specify an appropriation amount for this program. Therefore, while the bill authorizes the creation of such a program, actual funding would depend on subsequent appropriations legislation. The primary financial impact on hospitals like $HCA and $UHS would stem from increased operational costs associated with compliance and potential penalties for non-compliance, rather than direct funding from the grant program. Structural losers under this proposed legislation would be hospital operators, particularly those with significant Medicare patient populations, due to the new compliance requirements and potential civil monetary penalties. Companies such as HCA Healthcare, Inc. ($HCA) and Universal Health Services, Inc. ($UHS) are examples of large hospital systems that would be directly impacted by these new regulations. The bill aims to reduce medical debt burdens for patients, which could indirectly affect hospital revenue streams by altering debt collection practices and potentially increasing uncompensated care if the grant program is not adequately funded or utilized. Recent market data shows that $HCA is currently trading at $485.74, with a 7-day change of +2.64% but a 30-day change of -8.84%. Similarly, $UHS is at $181.74, with a 7-day change of +1.55% but a 30-day change of -5.66%. The negative 30-day performance for both companies suggests market apprehension, potentially influenced by legislative proposals like HR7478 that could increase regulatory burdens and financial risks for hospital operators. The bill's early stage means significant legislative steps remain, including committee hearings, potential amendments, and votes in both the House and Senate, before it could become law.