Bill > HB273

This bill, titled the "Montana Medical Debt Patient Protection Act," introduces comprehensive protections for patients facing medical debt collection. The legislation defines key terms like "medical debt," "health care provider," and "extraordinary collection action," and establishes significant restrictions on how medical debts can be collected. Specifically, the bill prohibits certain aggressive collection practices such as causing arrest, placing liens on primary residences, foreclosing homes, garnishing wages, or reporting negative credit information. Health care providers must wait at least 120 days after sending the first bill before initiating extraordinary collection actions and must provide a 30-day notice before taking such actions. The bill also prevents collection efforts during state or federal emergencies and prohibits collection actions while an insurance claim is under appeal. Additionally, the legislation protects patients by automatically exempting up to $3,000 in bank accounts, stocks, or securities from seizure, and voids debt if collection agencies willfully violate these provisions. The bill recognizes that medical debt is often unavoidable and results from unexpected health emergencies, and aims to prevent patients from experiencing severe financial hardship while prioritizing their healthcare needs. The law will apply to all medical debt collection actions occurring on or after October 1, 2025.

Health and Social Services

https://bills.legmt.gov/#/laws/bill/2/LC1385