The bill proposes the addition of a new chapter titled "MEDICAL DEBT REPORTING" to Title 6 of the General Laws, which deals with "COMMERCIAL LAW — GENERAL REGULATORY PROVISIONS." This new chapter includes several insertions, such as definitions for terms like "consumer," "consumer reporting agency," "debt collector," and "medical debt." It also introduces provisions that prohibit healthcare providers, facilities, and emergency medical transportation services from furnishing information about medical debt to consumer reporting agencies. Furthermore, it mandates that contracts with collection entities include a clause that prevents the reporting of medical debt to consumer reporting agencies.

The bill also specifies that credit reporting agencies are not allowed to acquire, record, or report any medical debt and must not include adverse information related to medical debt in consumer reports. Debt collectors are prohibited from using false, deceptive, or misleading information when collecting medical debt and must include specific language in correspondence to consumers about the prohibition of credit bureaus from reporting medical debt. The bill outlines actions that cannot be taken by creditors or debt collectors when an internal or external review of a health insurance decision is pending. Additionally, it establishes enforcement measures, including financial penalties for noncompliance and the possibility of legal action by the attorney general. The act is set to take effect on January 1, 2025.