The proposed bill, known as the "medical debt act," aims to prohibit consumer reporting agencies from including adverse information related to medical debt in consumer reports. Specifically, it establishes that a consumer reporting agency cannot report medical debt unless the report is associated with a credit transaction exceeding the national conforming loan limit for a 1-unit property, as determined by the Federal Housing Finance Authority. Additionally, collection agencies are restricted from representing that medical debt information will be included in consumer reports unless it meets the same criteria. The bill also mandates that collection agencies inform consumers of this prohibition in their initial written communications.

Furthermore, the bill defines key terms such as "medical debt," which refers to debts arising from health care services or goods, and outlines the responsibilities of collection agencies when dealing with medical debt. Individuals who believe their rights under this act have been violated are granted the ability to pursue civil action for actual damages or injunctive relief, and they may recover costs, including attorney fees, if they prevail in their case.