Bill > HB288

This bill establishes a maximum interest rate of 3% for medical debt in Kentucky, providing significant consumer protection for patients facing healthcare-related financial obligations. The bill defines medical debt as any indebtedness owed by an individual or their guardian for healthcare services and limits the interest that can be charged on such debt. It amends several existing statutes to implement this protection, including provisions that allow individuals to recover twice the amount of any excess interest paid and establishing that judgments in medical debt collection cases cannot exceed the 3% annual interest rate. The legislation also includes technical amendments to existing laws, such as expanding civil penalties for excessive interest and requiring healthcare facilities to include information about the new interest rate limitation on itemized statements. By capping medical debt interest rates, the bill aims to reduce the financial burden on patients and prevent predatory lending practices in healthcare billing, offering relief to individuals who may struggle with mounting medical expenses.