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SR 664

JOINT RESOLUTION MAKING AN APPROPRIATION OF $1,000,000 FOR THE PURCHASE, CANCELLATION AND FORGIVENESS OF MEDICAL DEBT

2025 Regular Session Introduced by Pete Appollonio and 3 co-sponsors

The bill appropriates $1,000,000 to continue Rhode Island’s Medical Relief Program to purchase, cancel, and forgive medical debt for affected residents.

06/10/2025 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · SR 664

Summary — SR 664 (2025): Appropriation for Purchase, Cancellation and Forgiveness of Medical Debt

Title and sponsors

  • Bill number: SR 664 (Joint Resolution)
  • Title: “Making an appropriation of $1,000,000 for the purchase, cancellation and forgiveness of medical debt”
  • Introduced by: Senators McKenney, Burke, Appollonio, and Euer
  • Statutory reference for program: Rhode Island Medical Relief Program, § 35-4-21.1

Purpose / intent

The resolution appropriates $1,000,000 from the state treasury (unobligated funds for FY 2025–2026) to continue Rhode Island’s Medical Relief Program for purchasing, cancelling, and forgiving medical debt. The stated aim is to reduce the financial burden of medical bills on Rhode Islanders—particularly groups disproportionately affected (veterans, older adults, people with disabilities, and minority populations).

Key provisions

  • Appropriates $1,000,000 for the continued purchase, cancellation and forgiveness of medical debt consistent with § 35-4-21.1.
  • Directs the state controller to draw orders on the general treasurer for payment upon receipt of properly authenticated vouchers.
  • Funds are to be taken from any money in the treasury not otherwise appropriated for fiscal year 2025–2026.

How the program works (context)

  • The Medical Relief Program purchases medical debt portfolios (often available from creditors or debt buyers at steep discounts—“pennies on the dollar”) and cancels or forgives that debt on behalf of affected consumers.
  • The resolution does not change program mechanics or eligibility rules; it provides funding to continue those activities under existing law.

Who is affected

  • Primary beneficiaries: Rhode Islanders with outstanding medical debt (including insured households that incurred high cost-sharing).
  • Secondary effects: debt buyers and creditors (who may sell portfolios), healthcare providers (indirectly), and state administrative staff overseeing the program.
  • The appropriation is limited in size; the number of people helped will depend on the size and price of acquired debt portfolios.

Fiscal and implementation notes

  • Amount: $1,000,000 (FY 2025–2026).
  • Source: State general funds not otherwise appropriated.
  • Implementation details (procurement of portfolios, prioritization, and forgiveness procedures) remain governed by § 35-4-21.1 and program administrative rules.

Legislative status & timeline

  • Introduced: March 7, 2025 (per resolution text); received by Secretary of the Senate May 30, 2025.
  • Read & adopted and reported enrolled: May 31, 2025.
  • Referred to: Senate Finance. Hearing scheduled June 6; committee meeting actions in early June.
  • Current status (as of 06/10/2025): Senate Finance committee recommended the measure be held for further study (i.e., not advanced at that time).

Additional context

  • Supporters cite studies showing medical debt is often the result of acute events, is disproportionately borne by vulnerable groups, and that cancellation via purchase can be cost-effective.
  • The appropriation is narrowly targeted to the debt-relief program and does not expand statutory authority—rather, it provides funding to carry out existing program activities.

Compiled from official sources — confirm details with the bill’s official record.

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