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Subcommittee advances Medical Debt Protection Act after divided vote
Summary
The Labor and Commerce Subcommittee 2 reported HB 17-25, the Medical Debt Protection Act (substitute), by a 5-2 vote after testimony from patient advocates, health organizations and hospital and creditor groups. The bill would limit interest and certain collection practices on medical debt and require affordable payment plans.
House Bill 17-25, the Medical Debt Protection Act, was reported by the Virginia House Labor and Commerce Subcommittee 2 on a 5-2 vote after a hearing that drew patient advocates, health-care organizations and creditor groups.
Delegate L. Delaney, the bill’s patron, presented the substitute and said the measure “prevents interest or late fees on medical debt and requires payment plans to be offered and that they follow certain criteria.” The substitute also relies on the IRS list of “extraordinary collection actions” to define prohibited collection practices and removes duplicative provisions that the General Assembly adopted in prior legislation on reporting medical debt.
The bill would: prohibit charging interest or late fees on medical debt; require that offered payment plans not exceed 5% of a patient’s gross monthly income and not begin until at least…
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