Substitute House Bill No. 5127, effective January 1, 2027, establishes new regulations for health care and veterinary care providers regarding the advertising and provision of third-party financing. The bill defines key terms such as "ancillary product," "consumer," "health care provider," and "third-party financing." It prohibits providers from promoting third-party financing through their branding, providing access to financing websites, or discussing financing options while consumers are receiving care or under sedation. Additionally, providers are not allowed to receive financial incentives for promoting financing, complete applications on behalf of consumers, or charge for services before they are rendered, with certain exceptions for incurred costs. The bill also requires that any discussions about third-party financing include a written disclosure to consumers, detailing the nature of the financing and the provider's lack of affiliation with the lender, although exemptions apply in specific situations.

Furthermore, the bill mandates that health care and veterinary providers allow consumers to return ancillary products purchased through third-party financing within a thirty-day period for a full refund, with exceptions for customized products or items that have been used or damaged. Violations of these provisions will be classified as unfair or deceptive trade practices, enforceable only by the Attorney General, and the existing provisions of section 42-110g of the general statutes will not apply to these violations. The bill clarifies that it does not affect any agreements made by providers prior to its effective date.