House Bill No. [insert bill number] aims to protect patients from aggressive collection actions related to medical debt by implementing several key provisions. The bill establishes a waiting period of 120 days after a healthcare provider sends the first bill before any extraordinary collection actions can be initiated. Additionally, it requires healthcare providers to notify patients at least 30 days in advance of any intended extraordinary collection actions. The bill also prohibits certain collection actions, such as wage garnishment and placing liens on primary residences, and ensures that patients can appeal health insurance decisions before their debts are pursued. Furthermore, it provides a $3,000 exemption for patients' bank accounts and other assets from collection actions.

The bill amends Section 25-13-609 of the Montana Code Annotated to include protections for medical debt, specifically allowing patients to retain a certain value in their bank accounts and other assets. It also clarifies that nothing in the bill prohibits healthcare providers from issuing advance beneficiary notices as required by federal law. The provisions of this act will apply to any collection actions on medical debt occurring on or after October 1, 2025. Overall, the "Montana Medical Debt Patient Protection Act" seeks to alleviate the burden of medical debt on patients and promote their financial and emotional well-being.

Statutes affected:
LC Text: 25-13-609
HB0273_1(1): 25-13-609
HB0273_1(2): 25-13-609
HB0273_1(3): 25-13-609
HB0273_1(4): 25-13-609
HB0273_1(5): 25-13-609
HB0273_1(6): 25-13-609
HB0273_1(7): 25-13-609
HB0273_1: 25-13-609
HB0273_2(1): 25-13-609
HB0273_2(2): 25-13-609
HB0273_2(3): 25-13-609
HB0273_2(4): 25-13-609
HB0273_2(5): 25-13-609
HB0273_2(6): 25-13-609
HB0273_2: 25-13-609