Bill > HB1725

This bill establishes the Medical Debt Protection Act, which creates new regulations for large health care facilities and medical debt buyers to protect patients from aggressive medical debt collection practices. The bill prohibits charging interest or late fees on medical debt until 90 days after the final invoice due date, with a maximum annual interest rate of 3%. It restricts extraordinary collection actions, such as causing arrest, placing liens, foreclosing on property, or garnishing wages, particularly for patients who may qualify for financial assistance. Large health care facilities and medical debt collectors must provide patients with a notice at least 30 days before taking any extraordinary collection actions, including information about financial assistance availability. The bill requires medical debt buyers to adhere to strict guidelines when purchasing medical debt, such as prohibiting high-interest rates and ensuring patients are not overcharged. If a patient has overpaid, the facility must refund the excess amount within 60 days. Violations of the act are considered prohibited practices under the Virginia Consumer Protection Act, subject to its enforcement provisions. The bill will take effect on July 1, 2026, giving healthcare providers and debt collectors time to adjust to the new regulations.

Business and Industry

https://lis.virginia.gov/bill-details/20251/HB1725