Under Sanders' plan, the federal government would negotiate and pay off past-due medical bills in collections that have been reported to credit agencies. (Photo: Shutterstock)

(Bloomberg) –Senator Bernie Sanders is proposing to cancel an estimated $81 billion in past-due medical debt owed by Americans as he vies for the 2020 Democratic presidential nomination using a platform focused on health care.

The plan is still being formulated and details — including how it would be financed — weren't addressed in an emailed release from the Sanders campaign on Saturday. The full proposal will be announced within a month.

"Your financial life and future should not be destroyed because you or a member of your family gets sick," the Vermont senator said in a statement. "I am sick and tired of seeing over 500,000 Americans declare bankruptcy each year because they cannot pay off the outrageous cost of a medical emergency or a hospital stay."