This bill amends existing laws related to deceptive trade practices and the handling of medical debt. It introduces a new definition of "medical debt," which refers to a consumer's obligation to pay for healthcare services, products, or devices owed to healthcare facilities or professionals, excluding Medicaid reimbursement and child support orders. The bill prohibits credit bureaus from reporting medical debt, thereby protecting consumers from negative credit impacts due to unpaid medical bills.

Additionally, the bill restricts the filing of executions and attachments against a consumer's principal residence for judgments based on medical debt, ensuring that individuals are not at risk of losing their homes due to such debts. It specifies that no attachment shall be filed against a defendant's principal residence or garnishment of wages for judgments related to medical debt. These protections apply specifically to medical debt as defined in the legislation. The act is set to take effect on January 1, 2026, providing a clear timeline for the implementation of these consumer protections.

Statutes affected:
5184: 6-13.1-20, 9-25-3
5184  SUB A: 6-13.1-20, 9-25-3