The bill amends section 395.3011 of the Florida Statutes to revise the definition of "extraordinary collection action" and introduces a new term, "prohibited collection actions." The updated definition of "extraordinary collection action" now includes specific conditions under which a medical creditor can sell an individual's debt to a third party. These conditions require that the medical debt buyer must not engage in any prohibited collection actions, cannot charge excessive interest, and must return the debt if the individual qualifies for financial assistance. Additionally, if the debt is not returned, the buyer must follow specified procedures to ensure the individual does not pay more than their responsible amount.

The bill also outlines a list of activities classified as "prohibited collection actions," which include threatening arrest, obtaining liens on property, garnishing wages, and reporting adverse information to credit agencies. Notably, the bill deletes previous provisions that allowed for certain collection actions, such as deferring medically necessary care due to nonpayment. The act is set to take effect on July 1, 2026.

Statutes affected:
H 1271 Filed: 395.3011