The bill proposes amendments to Title 6 of the General Laws, adding a new chapter specifically addressing Medical Debt Reporting. It defines terms such as "consumer," "consumer reporting agency," "debt collector," and "medical debt." The bill prohibits healthcare providers, facilities, and emergency medical transportation services from furnishing information about medical debt to consumer reporting agencies. Additionally, it mandates that contracts with collection entities include a clause that prevents the reporting of medical debt to consumer reporting agencies. Credit reporting agencies are also barred from acquiring, recording, or reporting any medical debt, and they cannot include adverse information related to medical debt in consumer reports.

The bill further outlines the conduct of medical debt collectors, stating that they must not use false, deceptive, or misleading information when attempting to collect medical debt or when communicating with consumers. Correspondence to consumers must include a statement that Rhode Island law prohibits credit bureaus from reporting medical debt or factoring it into credit scores. The bill also sets forth conditions under which creditors and debt collectors must refrain from certain actions if an internal or external review of a health insurance decision is pending. In terms of enforcement, consumer reporting agencies or debt collectors that fail to comply with these requirements are liable to the consumer for monetary penalties, and the attorney general may take legal action against violators. The act is set to take effect on January 1, 2025.