A new report from the Community Service Society of New York (CSS) credits a slate of state-level policy changes for nearly eliminating hospital medical debt lawsuits and dramatically reducing the share of New Yorkers with medical debt in collections.
The findings, detailed in “The Campaign to End Medical Debt” report, show a 99.8% decline in medical debt lawsuits filed by hospitals across the state, from nearly 14,000 in 2019 to just over 100 in 2025. Over the same period, the percentage of New Yorkers with medical debt in collections fell from 7.6% to 1.7%, representing the removal of up to $337 million in debt from consumer credit reports.
The background: CSS launched its “Campaign to End Medical Debt” in 2019 after finding that hospitals were using increasingly aggressive collection tactics, including lawsuits, wage garnishments, and property liens. Many of the state’s largest hospitals had reportedly sued hundreds of patients, often from low-income or minority communities, for relatively small balances.
The advocacy organization and its coalition partners used a three-pronged strategy: producing research to expose collection practices, engaging directly with hospital leaders, and organizing grassroots pressure through the #EndMedicalDebt and “We The Patients” campaigns.
The policy changes: Between 2020 and 2024, lawmakers enacted eight major reforms, many of which had bipartisan support, that together reshaped medical debt collection in the state:
- Shortened the statute of limitations for medical debt from six years to three.
- Reduced the interest rate on judgments from 9% to 2%.
- Banned hospitals from garnishing wages or placing liens on patients’ homes.
- Prohibited facility fees for preventive care.
- Required transparent hospital pricing data and a standardized financial assistance form.
- Expanded financial assistance eligibility to 400% of the federal poverty level.
- Banned all hospital reporting of medical debt to credit bureaus.
- Barred hospitals from suing most patients for unpaid medical bills.
Why it matters: For hospitals, the report highlights how external advocacy and legislative intervention can reshape billing and collection policies in a short time. For collectors and companies working with healthcare providers, it underscores a growing national movement to restrict traditional medical debt collection tools and redefine what is considered “fair” recovery.
CSS estimates these reforms are saving patients about $36 million annually in avoided lawsuits. The organization also notes that several hospitals voluntarily reformed their financial assistance policies after learning how their billing practices were affecting patients.
The bigger picture: With federal insurance coverage cuts looming, advocates like Assembly Health Chair Amy Paulin and State Sen. Gustavo Rivera say the effort is far from over. “These reforms have already benefited New York patients,” Paulin said, calling the campaign “a model for impactful change.” Rivera added that he hopes to “eliminate the absurdity of medical debt entirely.”
