The Washington State Senate passed legislation Friday that would dramatically reduce interest rates on medical debt from up to 9% to a maximum of 1% for debt accrued after December 31, 2026, following a lengthy floor debate that split along party lines.
Senator Emily Alvarado (D-West Seattle), who sponsored Senate Bill 5993, argued that high interest rates punish people for circumstances beyond their control. “No one plans to get sick. We shouldn’t penalize them. And 9% is a penalty,” Alvarado said. She noted that one in five Washingtonians currently carries medical debt and said there is no evidence that high interest rates compel payment.
The bill drew sharp opposition from Republican senators, with no Republicans voting for it. Senator John Braun (R-Centralia) warned about unintended consequences the legislation may create. “This isn’t about penalizing people. The bottom line is, there is a cost when these medical services are provided, and the question is who’s going to cover the cost,” Braun said.
Braun argued that hospitals may end up passing on costs to other patients or facing financial strain that could threaten their survival. “We may lose a hospital, we may lose multiple hospitals, I don’t think folks realize how close we are to that in many of our communities, and that would be tragic,” he said.
Alvarado emphasized that the legislation would not eliminate patient responsibility for debt but would make repayment more manageable. “We’re not getting rid of the underlying debt. Families still need to pay, but we give a little relief,” she said. The measure reduces the financial burden on patients without forgiving what they owe.
The bill now moves to the House, where it could undergo additional changes before potentially reaching the governor’s desk. State lawmakers are scheduled to remain in session until March 12. If enacted, the interest rate reduction would apply only to medical debt incurred after December 31, 2026, meaning existing debt would remain subject to current interest rates.
