The proposed bill aims to prohibit hospitals in South Dakota from reporting medical debt to collectors under specific circumstances. It establishes that a hospital cannot report medical debt if the individual is appealing a denial of insurance coverage, has not been assessed for financial assistance eligibility, has not received an itemized statement of services, is within a 30-day notification period of impending collection actions, is negotiating the bill amount in good faith, or is adhering to a payment plan with the hospital.

Additionally, the bill allows individuals who believe they have been negatively impacted by these provisions to file a civil lawsuit against the hospital for actual damages and attorney's fees. It also defines "medical debt" as any debt resulting from healthcare services and clarifies that a "medical debt collector" is any person involved in the collection of such debts.