Bill > H4274

This bill aims to alleviate the burden of medical debt for patients and families. It prohibits medical creditors or debt collectors from using certain extraordinary collection actions, such as causing a consumer's arrest or foreclosing on their real property, until at least 180 days after the first bill for a medical debt has been sent. The bill also limits the interest rate on medical debt to the lesser of 3% or the weekly average one-year constant maturity treasury yield, and exempts certain personal property, including homestead estates, cash savings, and necessary vehicles, from seizure on execution for medical debt. Additionally, the bill prohibits employers from taking adverse action against employees due to garnishments for medical debts. The provisions of the bill will apply to consumer medical debts incurred and contracts that take effect or are renewed on or after January 1, 2025.