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Bill > H0112

VT H0112

VT H0112
An act relating to medical debt relief and excluding medical debt from credit reports

summary

Introduced
01/28/2025
In Committee
01/28/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

This bill proposes to direct the State Treasurer to contract with an entity to acquire and abolish certain medical debts for Vermonters with incomes at or below 400 percent of the federal poverty level or who owe medical debt equal to five percent or more of their household income. The bill would also prohibit credit reporting agencies from reporting or maintaining information on Vermonters’ medical debt and would prohibit health care providers from reporting medical debt to credit reporting agencies.

AI Summary

This bill proposes a comprehensive medical debt relief program for Vermont residents that includes several key provisions: First, it appropriates $1,000,000 to the State Treasurer to contract with a nonprofit organization to purchase and abolish medical debts for eligible Vermonters. Eligibility is defined as residents with household incomes at or below 400% of the federal poverty level or those whose medical debt represents 5% or more of their household income. The contracted nonprofit will purchase medical debt from healthcare providers at fair market value, completely abolish the debt without tax consequences, and coordinate the removal of any associated negative credit reporting. Additionally, the bill prohibits credit reporting agencies from reporting or maintaining medical debt information on consumers' credit reports and prevents healthcare providers from reporting medical debt to credit agencies. The bill also includes provisions allowing certain nonprofit organizations (specifically those exempt under Section 501(c)(3) of the Internal Revenue Code) to access credit reports and medical debt information for the purpose of determining debt abolishment eligibility. These measures aim to protect vulnerable Vermonters from the long-lasting financial consequences of medical debt by providing debt relief and preventing negative credit impacts. The provisions will take effect on July 1, 2025.

Committee Categories

Health and Social Services

Sponsors (53)

Alyssa Black (D)*,  Angela Arsenault (D),  Daisy Berbeco (D),  Matt Birong (D),  Doug Bishop (D),  Tiff Bluemle (D),  Michelle Bos-Lun (D),  Jana Brown (D),  Bridget Burkhardt (D),  Elizabeth Burrows (D),  Scott Campbell (D),  Emily Carris-Duncan (D),  Conor Casey (D),  Brian Cina (D),  Voranus Coffin (R),  Esme Cole (D),  Wendy Critchlow (D),  Penny Demar (R),  Zon Eastes (D),  Rey Garofano (D),  Leslie Goldman (D),  Edye Graning (D),  William Greer (D),  Rebecca Holcombe (D),  Bob Hooper (D),  Jay Hooper (D),  Mary Howard (D),  Robert Hunter (D),  Bram Kleppner (D),  Emilie Krasnow (D),  Saudia Lamont (D),  Kate Logan (D),  Emily Long (D),  Topper McFaun (R),  Jubilee McGill (D),  Mike Mrowicki (D),  Dan Noyes (D),  Kate Nugent (D),  John O'Brien (D),  Carol Ode (D),  Woody Page (R),  Phil Pouech (D),  Debra Powers (R),  Barbara Rachelson (D),  Larry Satcowitz (D),  Tom Stevens (D),  Mary-Katherine Stone (D),  Chloe Tomlinson (D),  Dara Torre (D),  Edward Waszazak (D),  Chea Waters Evans (D),  Theresa Wood (D),  David Yacovone (D), 

Last Action

Read first time and referred to the Committee on Health Care (on 01/28/2025)

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