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House approves Medical Debt Protection Act after sponsor outlines compromise with stakeholders
Summary
House members passed House Bill 1725 after Delegate Delaney outlined a compromise that caps late-fee interest, limits extraordinary collection actions for eligible individuals and requires notices and grace periods; the clerk announced the vote as 53-44 in favor.
The House on Feb. 20 passed House Bill 1725, described by the sponsor as the Medical Debt Protection Act, which the sponsor said caps interest on late fees, limits certain extraordinary collection actions for patients eligible for financial assistance, and requires notice and grace periods before aggressive collection actions.
Delegate Delaney, speaking to the chamber about the Senate-passed version, said the bill caps interest on late fees at 3% after a 90-day grace period; it prohibits foreclosing on real property, placing liens and garnishing wages for individuals eligible for financial assistance; it requires sellers of medical debt to abide by the same protections; and it requires a 120-day grace period before extraordinary collection actions and a 30-day notice to patients prior to action.
After floor consideration the clerk announced the final tally as “Ayes. 53, noes 44,” and the presiding officer declared the bill passed. The sponsor characterized the bill as a balance that preserves hospitals’ tools to collect but reduces the risk of catastrophic financial harm to patients.
Why it matters: sponsor testimony on the floor framed medical debt as qualitatively different from other consumer debt because it arises from illness or emergency care; supporters said the bill protects patients from foreclosure and wage garnishment while preserving collection mechanisms with additional notice and grace periods.
Next steps: with House passage recorded, the bill will continue through the legislative process and any outstanding enrollment or Senate steps noted in the record.
