WILMINGTON, Del. — A new Delaware law that took effect today ensures that medical debt can no longer be included on consumer credit reports, offering new financial protection for thousands of residents struggling with healthcare costs. The measure, Senate Bill 156, was sponsored by Sen. Spiros Mantzavinos and Rep. Kim Williams. It passed the General Assembly with unanimous support and was signed into law by Governor Matt Meyer on July 29 at the Hope Center in New Castle.
“When we remove barriers like medical debt from the equation, we strengthen Delaware’s families, communities, and economy,” Meyer said. “With this law now in effect, we’re helping thousands of Delawareans breathe a little easier and ensure that no one’s financial future is destroyed because they got sick or needed care.” Mantzavinos said the bill was designed to protect residents from being punished for medical expenses that are often unavoidable. “We are all just one accident or one diagnosis away from being in an entirely catastrophic financial position,” he said. “SB 156 is an important update to our Medical Debt Protection Act that will prevent those experiencing medical debt from facing additional obstacles with credit reporting agencies, consumer reports, and others.”
Williams said the timing of the law is significant as Affordable Care Act subsidies are set to expire. “It gives thousands of Delawareans a fresh start and eases the weight of medical debt, something that’s often beyond a person’s control,” she said.
Alongside the new law, the state is partnering with the nonprofit Undue Medical Debt to erase up to $50 million in medical debt for an estimated 17,000 Delawareans. The initiative uses $500,000 in state funds to purchase and abolish bundled medical debt portfolios at a fraction of their original cost. Eligible residents will begin receiving letters in the coming weeks confirming their debt relief.
To qualify, households must have incomes at or below 400 percent of the federal poverty level, roughly $100,000 for a family of three, or hold medical debt equal to 5 percent or more of their annual income. Governor Meyer included the debt relief effort in his fiscal year 2026 budget. More than 100 million Americans are currently struggling with medical debt, much of which harms their credit scores and limits access to housing, loans, and employment opportunities.
