What is the Medical Debt Protection Act (HB1725)?

The Medical Debt Protection Act introduces significant protections for patients dealing with medical debt. It prohibits healthcare providers and debt buyers from charging interest or late fees, while also limiting aggressive collection tactics like selling debt or taking legal action. The bill requires a 120-day waiting period before any collection efforts can begin and mandates that patients receive clear notices before collections start. It also ensures that facilities have financial assistance policies and that collections cannot occur during insurance appeals. Additionally, medical debt buyers must follow specific rules, including returning debt if the patient qualifies for assistance. Overpayments must be refunded within a set timeframe. The law aims to promote fairness and transparency in the management of medical debt.

Source:

“VAHB1725.” BillTrack50, www.billtrack50.com/billdetail/1765251#:~:text=The%20bill%20prohibits%20....