The proposed bill aims to alleviate the burden of medical debt for patients and families by introducing several key provisions. It amends Chapter 93 of the General Laws to establish that consumers who successfully defend against civil actions for alleged debts are entitled to reasonable attorneys' fees and costs. Additionally, it introduces the Medical Debt Protection Act, which prohibits medical creditors and debt collectors from selling medical debt to debt buyers, reporting medical debt to consumer reporting agencies, and engaging in extraordinary collection actions, such as causing a consumer's arrest or foreclosing on property, until 180 days after the first bill has been sent. The bill also limits the interest rates on judgments for medical debt and exempts certain consumer properties from seizure.

Furthermore, the bill mandates that hospitals and healthcare providers cannot deny medically necessary care due to unpaid medical debt and requires them to publicly disclose their medical debt collection policies. It establishes specific exemptions for consumer earnings and property from garnishment and seizure related to medical debt, ensuring that a portion of wages remains protected. The provisions of the Medical Debt Protection Act will apply to consumer medical debts incurred on or after January 1, 2027, and the act is set to take effect on October 1, 2026.

Statutes affected:
Bill Text: 93-52