Bill > A03580

This bill establishes a three-year pilot program to provide hospital medical debt relief to eligible New York residents through a not-for-profit organization. Eligible residents are defined as individuals with household incomes at or below 400% of the federal poverty guidelines, or those with hospital medical debt equal to or greater than 5% of their household income. The program will work by having the not-for-profit organization identify and acquire hospital medical debt from general hospitals, then cancel that debt for eligible residents. Participating hospitals will provide patient data to help identify eligible individuals, with priority given to debts older than 18 months and those in low-income zip codes. The organization must notify residents when their debt is cancelled and ensure the debt is removed from credit reports. Additionally, the program requires an annual report to state officials detailing the amount of debt discharged, number of residents helped, and other key metrics. The bill also includes a tax provision that exempts debt cancellation from state income tax. The pilot program aims to provide relief to residents struggling with medical debt while creating transparency around medical financing in the state.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/A3580