The bill S.83, introduced by Senator Vyhovsky, aims to enhance consumer protection regarding medical debt by implementing several key provisions. It prohibits credit reporting agencies from reporting or maintaining information related to medical debt in a consumer's file. Additionally, the bill limits the interest rate on medical debt to a range between 1.5% and 4% per annum, based on the weekly average one-year constant maturity Treasury yield, and specifies that patients receiving financial assistance will not incur any interest or late fees on their medical debt. Furthermore, the bill prohibits courts from ordering the attachment of a person's property or garnishing wages to enforce medical debt.

The bill also includes amendments to existing laws, such as adding a new section that explicitly prohibits large healthcare facilities and medical debt collectors from reporting medical debt to credit reporting agencies. It defines medical debt and health care services to clarify the scope of the legislation. The effective date for the act is set for July 1, 2025, with the interest limitations applying only to new medical debt incurred after that date.

Statutes affected:
As Introduced: 9-41a, 18-221, 18-10