The proposed "Medical Debt Protection Act" aims to regulate the collection and management of medical debt in Michigan. It prohibits large healthcare facilities and medical debt buyers from charging interest or late fees on medical debt until 90 days after the due date of the final invoice. Additionally, it sets a cap on interest rates at 3% per annum and restricts the use of extraordinary collection actions, such as causing an individual's arrest or garnishing wages, until 120 days after the due date. Medical creditors are also required to provide patients with a notice detailing available financial assistance and any impending extraordinary collection actions at least 30 days prior to taking such actions.

Furthermore, the bill mandates that medical creditors cannot sell medical debt to buyers unless a legally binding agreement is in place that prohibits the buyer from engaging in extraordinary collection actions and ensures adherence to specified procedures. If a patient overpays their medical debt after receiving financial assistance, the healthcare facility or debt collector must refund the excess amount within 60 days. Violations of this act would be considered a prohibited practice under the Michigan Consumer Protection Act, allowing for enforcement of its provisions.