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 providing 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.

Furthermore, the bill 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 also defines "medical debt" as any debt arising from healthcare services and clarifies that a "medical debt collector" is any person involved in collecting such debts.