SPRINGFIELD – State Senator Graciela Guzmán’s bill to protect those burdened by health care debt from having a lien placed on their home during a health care debt collection has been signed into law.
“No one should have to fear losing their home because they got sick,” said Guzmán. “For too long, hospitals have been allowed to use medical debt to threaten the stability of working families. Illinois should never allow that debt to become a tool for taking away someone’s home. Today we put an end to one of the most harmful debt collection practices in our state.”
The legislation was introduced after Representative Amy Briel heard from families whose lives were upended following OSF HealthCare’s acquisition of St. Margaret’s Hospital. Residents described increasingly aggressive debt collection tactics, including placing liens on homes over medical debts as small as $2,000.
Guzmán’s law will prohibit hospitals from placing liens on a person’s home during a health care debt collection action beginning Jan. 1, 2027. According to the Illinois Coalition for Immigrant and Refugee Rights, Black and Hispanic adults, women, those with lower incomes, and the uninsured are the most likely to have health care debt. As of 2021, the Illinois Department of Healthcare and Family Services found that over 900,000 Illinoisans are uninsured.
“A home is more than an asset. It’s where children grow up, where families gather, and where people build their futures,” said Guzmán. “No corporation should be able to use a medical bill as leverage to put that stability at risk. This law draws a clear line: getting sick cannot become an excuse to take away someone’s housing security.”
House Bill 4461 has been signed into law and goes into effect Jan. 1, 2027.
