The bill amends RCW 19.52.010 to lower the interest rate on medical debt, establishing a new simple interest rate of one percent per year on medical debt accrued after December 31, 2026. It specifies that interest charged or collected on medical debt cannot exceed this rate, regardless of whether it is before or after a judgment is entered. Additionally, the bill prohibits the charging or collection of interest during certain periods, such as when a hospital has not completed required charity care screenings, when the medical debt is later determined to be invalid or not lawfully owed, or when it is deemed not legally enforceable by a court.

Furthermore, if a medical debt is reduced or eliminated under the relevant charity care laws, any interest charged or collected on that portion of the debt after the effective date of this section is rendered void and must be refunded. This legislative change aims to provide greater financial protection for individuals facing medical debt by capping interest rates and ensuring that interest is not accrued under specific circumstances.

Statutes affected:
Original bill: 19.52.010, 6.17.020, 4.56.190, 4.56.210
Substitute bill: 19.52.010
Engrossed substitute: 19.52.010