Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: SB 0701'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill, the "Medical Debt Protection Act," prohibits the foreclosure or wage garnishment of medical debt. It limits interest and fees on medical debt, restricts how medical debt can be sold and collected, and requires healthcare providers to offer information about financial assistance options. The bill aims to protect individuals from aggressive debt collection practices related to medical bills.
Key provisions
- Limits interest and fees on medical debt to a maximum of 3% per annum.
- Prohibits the use of extraordinary collection actions like wage garnishment, property foreclosure, and arrest to collect medical debt.
- Requires healthcare providers to offer information about financial assistance programs to patients.
- Restricts the sale of medical debt to medical debt buyers who agree to specific restrictions on collection practices.
- Mandates a 90-day grace period before charging interest on medical debt.
- Requires a 120-day waiting period before initiating extraordinary collection actions.
- Requires creditors to provide notice to patients 30 days before initiating extraordinary collection actions.
- Establishes liability for creditors regarding actions taken by medical debt buyers.
Who is affected
- Patients with medical debt
- Healthcare providers (large healthcare facilities and medical creditors)
Bill text
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- Senate Introduced Bill
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