The proposed bill, known as the "Medical Debt Act," aims to protect consumers from the negative impacts 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 barred from communicating or reporting medical debt information to consumer reporting agencies. The bill establishes clear definitions for terms such as "medical debt," "medical creditor," and "consumer reporting agency," and outlines the responsibilities of collection agencies when dealing with medical debt.

Furthermore, the bill mandates that if a consumer reporting agency does include medical debt in a report, it must only reflect the amount owed after any discounts or payments. Consumers who believe their rights under this act have been violated can pursue civil action for actual damages or injunctive relief, with the possibility of recovering legal costs if they prevail. The act will only take effect if Senate Bill No. 95 is also enacted into law.