The bill proposes an amendment to Chapter 6-26 of the General Laws, specifically by adding a new section titled "6-26-11. Medical debt interest cap." This new section defines "medical debt" as a consumer's obligation to pay for healthcare services, products, or devices to a healthcare facility or professional. It sets a cap on the interest rate for medical debt to be aligned with the weekly average one-year constant maturity Treasury yield, establishing a minimum of 1.5% per annum and a maximum of 4% per annum as determined by the preceding calendar week's data from the Board of Governors of the Federal Reserve System. Additionally, patients who are receiving financial assistance will not be charged any interest or late fees on their medical debt.
The interest rate cap specified in the bill will only apply to new medical debt incurred after the enactment of this section. The bill does not mention any deletions from the current law. The act is designed to regulate the amount of interest that can be charged on medical debt, potentially easing the financial burden on consumers facing such debts. The legislation is set to be effective immediately upon its passage.