The Medical Debt Mitigation Amendment Act of 2025 aims to alleviate the financial burden of unpaid medical bills on District families by enhancing transparency in medical billing and ensuring fair debt collection practices. The bill addresses the issue of medical debt affecting nearly 90,000 residents, which can lead to severe consequences such as bankruptcy and poor health outcomes. Key provisions include strengthening financial assistance policies at large healthcare facilities, requiring uniform income eligibility criteria, transparent communication of these policies, and good faith estimates of healthcare costs prior to treatment. Additionally, the legislation mandates annual reporting by healthcare facilities to the Department on financial assistance aspects and establishes penalties for noncompliance.

The bill also introduces specific protections for low-income patients, such as mandated payment plans for unpaid medical bills, a prohibition on reporting medical debt to credit agencies, and restrictions on aggressive debt collection practices. It requires that patients be informed about financial assistance options before debt collection begins and ensures that no additional interest or late fees are charged unless the patient has refused financial assistance. The Office of the Attorney General is granted enforcement powers to ensure compliance with these new regulations. Overall, the legislation seeks to create a more equitable healthcare system by preventing future medical debt and supporting residents in managing their healthcare costs effectively.