Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: HB 5254'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
House Bill 5255, the "Medical Debt Protection Act," prohibits the foreclosure or wage garnishment of medical debt. It limits interest and fees on medical debt, restricts aggressive collection practices, and requires healthcare facilities to provide patients with information about financial assistance options. The bill aims to protect individuals from burdensome debt collection tactics related to medical bills.
Key provisions
- Limits interest and late fees on medical debt to a maximum of 3% per annum.
- Prohibits the use of arrest, property foreclosure, or wage garnishment for medical debt collection.
- Requires healthcare facilities to provide patients with notice of extraordinary collection actions before initiating them.
- Mandates a 90-day grace period before charging interest on medical debt.
- Restricts the sale of medical debt to medical debt buyers who agree to specific collection practices.
- Requires healthcare facilities to offer financial assistance to eligible patients.
- Establishes a process for refunding excess payments made by patients after receiving financial assistance.
- Defines key terms related to medical debt and collection practices.
Who is affected
- Patients with medical debt
- Healthcare providers (large healthcare facilities and medical creditors)
- Medical debt buyers
Bill text
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- House Introduced Bill
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