STAND. COM. REP. NO. 2952

Honolulu, Hawaii

RE: S.B. No. 3025

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3025, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL DEBT,"

begs leave to report as follows:

The purpose and intent of this measure is to create within the Office of Wellness and Resilience a medical debt acquisition and forgiveness program to assist qualifying persons in the State who have outstanding medical debt.

Your Committee received written comments in support of this measure from the Office of Wellness and Resilience, Healthcare Association of Hawaii, Holomua Collaborative, American Cancer Society Cancer Action Network, AlohaCare, Hawaii Public Health Institute, Mana Up, HPM Building Supply, The Queen's Health Systems, and two individuals.

Your Committee received written comments on this measure from the State Procurement Office.

Your Committee finds that outstanding medical debt is a widespread issue in the State. Your Committee recognizes that some other states and cities have partnered with a nonprofit organization that has purchased billions of dollars in medical debt from health care providers and collection agencies for approximately 0.01 percent of the overall cost, and this intervention has completely eliminated the respective patients' medical debts. Your Committee believes that the State should implement a similar initiative to assist its residents who have unpaid medical debt.

Your Committee has amended this measure by clarifying the income requirements for individuals who may participate in the program.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3025, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3025, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair