The proposed bill, known as the "medical debt act," aims to protect consumers from the negative impact of medical debt on their credit reports. It prohibits consumer reporting agencies from including adverse information related to medical debt in consumer reports, with specific exceptions for high-value credit transactions. Additionally, medical creditors and debt collectors are restricted from communicating or reporting medical debt information to consumer reporting agencies. Collection agencies are also required to inform consumers in their initial communications that Michigan law prohibits the reporting of medical debt information under certain conditions.

The bill establishes clear definitions for terms related to medical debt, such as "medical creditor," "medical debt," and "medical debt collector." It allows individuals who believe their rights have been violated under this act to pursue civil action for actual damages or injunctive relief, and if they prevail, they may recover costs and reasonable attorney fees. Overall, the legislation seeks to create a more equitable environment for consumers dealing with medical debt, ensuring that such debts do not unduly affect their creditworthiness.