The proposed bill, known as the "Hospital Financial Assistance Act," mandates that hospitals develop and implement financial assistance programs for patients by January 1, 2027. These programs must be based on objective metrics tied to federal poverty guidelines and include provisions for uninsured patients, allowing for discounts based on a sliding scale for those with incomes at or below 350% of the federal poverty guidelines. Hospitals are required to publish information about their financial assistance programs in various formats, including bills, notifications before sending medical debt to collection agencies, and on their websites, ensuring the information is accessible and understandable.

Additionally, the bill outlines the responsibilities of hospitals to report annually to the Department of Health and Human Services on the applications received for financial assistance, the benefits provided, and any uncollected or forgiven debt. The Department is tasked with establishing a uniform process for collecting patient income information to determine eligibility for assistance. Violations of the act may result in civil fines of up to $10,000, which will be deposited into a newly created medical debt relief fund to support programs aimed at alleviating medical debt in the state.