Bill > HB05424

This bill aims to provide significant protections for consumers with medical debt by implementing several key restrictions. The legislation would prohibit medical debt from being sold more than twice, limiting the number of times a debt can be transferred between creditors. It would also establish a three-year statute of limitations for debt collection actions, meaning no legal proceedings to collect medical debt can be initiated more than three years after the debt was originally incurred. The bill further restricts debt owners from recovering more than the actual cost of the healthcare services provided, preventing additional fees or markup. Another critical provision prevents credit rating agencies from including medical debt in credit score calculations, which could help protect consumers' credit ratings from being negatively impacted by medical expenses. Additionally, the bill would create new transparency requirements for entities purchasing medical debt, though the specific details of these requirements are not elaborated in the provided text. These provisions collectively aim to provide financial relief and protection for individuals struggling with medical expenses, recognizing the often unexpected and burdensome nature of healthcare costs.