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Committee adopts substitute for Medical Debt Protection Act; bill reported 12–9
Summary
The committee adopted a substitute to the Medical Debt Protection Act that prohibits interest and late fees on medical debt and bars certain extraordinary collection actions; committee reported the substitute 12–9.
Delegate Delaney presented the Medical Debt Protection Act (HB 1725) to the Committee on Labor and Commerce on Jan. 21. The substitute adopted in committee narrows the original draft: it prohibits charging interest or late fees on medical debt and bars certain extraordinary collection actions, including arrest, foreclosure of a primary residence and wage garnishment. The substitute removed language that would have required providers to offer payment plans before pursuing collections, following concerns that the requirement could conflict with existing law.
Why it matters: The substitute creates statutory limits on some collection practices by large health facilities and medical debt buyers and designates violations as a…
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