The proposed bill aims to prohibit the reporting of medical debt by medical creditors and debt collectors to consumer reporting agencies, establishing that such a violation constitutes a Class 2 misdemeanor. It introduces definitions for key terms, including "consumer reporting agency," "medical creditor," "medical debt," and "medical debt collector," to clarify the scope of the legislation.

Additionally, the bill outlines specific circumstances under which hospitals cannot pursue the collection of medical debt from individuals. These include situations where the individual is appealing a denial of insurance coverage, has not yet been assessed for financial assistance eligibility, has not received an itemized statement, is within a 30-day notice period of impending collection actions, is negotiating the bill amount, or is adhering to a payment plan with the hospital. This legislation seeks to provide protections for consumers facing medical debt and ensure fair practices in the collection process.