The bill S.27 aims to provide medical debt relief for Vermont residents by directing the State Treasurer to contract with a nonprofit entity to acquire and abolish certain medical debts for individuals with incomes at or below 400 percent of the federal poverty level or those whose medical debt equals five percent or more of their household income. The bill appropriates $1,000,000 from the General Fund for this purpose and outlines the responsibilities of the contracted entity, including purchasing medical debt at fair market value, abolishing it without cost to the debtor, and ensuring the removal of adverse information from credit reports.

Additionally, the bill prohibits credit reporting agencies from reporting or maintaining information related to medical debt and restricts health care providers from reporting such debts to credit agencies. It amends existing laws to include provisions that allow organizations exempt from taxation under Section 501(c)(3) of the Internal Revenue Code to determine eligibility for medical debt abolition. The act is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 9-2480b, 9-2480g, 18-221, 18-10