The bill amends the General Laws to provide clearer definitions and protections regarding medical debt. It introduces a definition for "medical debt" in Section 6-13.1-20, which encompasses obligations owed by consumers for healthcare services, products, or devices, while explicitly excluding Medicaid reimbursements and child support orders. Additionally, it clarifies that a "credit report" does not include reports solely related to transactions with healthcare providers for medical debt. A significant provision prohibits the filing of executions against a defendant's principal residence for judgments based on medical debt, thereby safeguarding consumers from losing their homes due to healthcare-related financial obligations.

Moreover, the bill modifies Sections 9-25-3 and 10-5-2 to reinforce the prohibition against executing or attaching a defendant's principal residence in cases of medical debt. It also establishes that violations of these provisions will be considered slander of title and restricts wage garnishment for judgments based on medical debt, ensuring that no garnishment shall be issued for such judgments. The bill prioritizes garnishment for child support over medical debt and mandates that employers only withhold the non-exempt portion of wages in response to garnishment orders. These amendments are designed to provide additional protections for consumers facing financial difficulties due to healthcare costs and will take effect on January 1, 2026.

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