Treasurer Pieciak: Medical Debt Relief invests in Vermonters

February 3, 2025  |  By Mike Pieciak 

As Vermont’s Treasurer, I am committed to making investments that lower costs, strengthen our economy, and support healthier communities. I believe every Vermonter deserves a fair shot at success,  regardless of the situation they are born into. 

Yet, for too many Vermonters, the cost of health care stands in the way of investing in their future.  Vermont has some of the highest health care costs in the country, forcing Vermonters to either forgo necessary treatment or be burdened with medical debt through no fault of their own.  

We’re all just one health crisis away from being hit with medical debt, and that debt can linger for years,  dragging down credit scores and making it more expensive to buy a home, start a business, and build wealth.  

Unlike other debt, consumers often have no idea of the cost of medical care before they receive it, and they have little or no choice whether to incur the cost. The consequences are devastating for  Vermonters, their families, and our economy. 

To help Vermonters get back on their feet, I'm proud to announce a proposal to provide medical debt relief to thousands of Vermonters. Without requiring additional taxes or fees, our proposal would make a one-time investment of $1 million to eliminate up to $100 million of medical debt, focusing on Vermonters with significant debt and low incomes. The program would provide immediate, life-changing relief to thousands of individuals at a critical moment when healthcare costs are soaring, and Vermonters are facing an affordability crisis. 

Other states such as Rhode Island have adopted similar initiatives, successfully wiping out medical debt for their most vulnerable residents at pennies on the dollar. 

This proposal would also shield Vermonters’ credit scores from medical debt, preventing healthcare providers and hospitals from reporting the debt to credit agencies.  

Let’s face it, medical debt doesn’t reflect someone’s financial responsibility — it's a reflection of the gaps in our healthcare system. Removing medical debt from credit scores would relieve Vermonters of the financial and emotional stress that so often accompanies this burden and give people a chance to rebuild their lives without debt holding them back. 

I am excited about this program because it is a direct investment in people, giving Vermonters the freedom to invest in their families, their homes, and their futures. Vermonters would also be automatically enrolled in the program — no forms, no hassle. 

I believe this proposal represents government functioning at its best, taking pressure off of household budgets and helping people move forward with their lives.  

People with unpaid medical debt are more likely to put off seeking the care they need due to fear of punishment, which can worsen their health, lead to more expensive care in the future, or put them out of work. When someone is sick or injured, their focus should be on recovery, not their finances. 

I hope Vermonters will join me in supporting this program and contact their legislators to lift the burden of medical debt for thousands of Vermonters and build a healthier, more financially secure future for our state. 

Mike Pieciak is Vermont’s State Treasurer.