The 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, and excludes Medicaid reimbursement and child support orders. The bill prohibits credit bureaus from reporting medical debt, thereby protecting consumers from negative credit implications due to unpaid medical bills.

Additionally, it 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 healthcare-related financial obligations. The bill outlines specific procedures regarding the attachment of a defendant's assets, stating that no attachment shall be filed against a principal residence for judgments based on medical debt. It also clarifies that garnishments of wages for medical debt are not permitted, prioritizing other obligations such as child support.

The provisions of this act are set to take effect on January 1, 2026.

Statutes affected:
169: 6-13.1-20, 9-25-3
169  SUB A: 6-13.1-20, 9-25-3