This bill introduces a new section to South Dakota law that prohibits hospitals from reporting medical debt to collectors under specific circumstances. These circumstances include situations where an individual is appealing a denial of insurance coverage, where the hospital has not yet determined the individual's eligibility for financial assistance, or before the individual has received an itemized statement of services. Additionally, the bill protects individuals for thirty days after being notified of impending collection actions, during good faith negotiations regarding the bill, and while complying with a payment plan.

The bill also allows individuals who believe they have been adversely affected by these provisions to file a civil action against the hospital for actual damages and attorney's fees. It defines "medical debt" as any debt arising from healthcare services and clarifies that a "medical debt collector" is anyone who collects or attempts to collect such debts. This legislation aims to provide greater protections for individuals facing medical debt and ensure that hospitals follow fair practices before reporting debts to collectors.