Bill > S0172

This bill provides an interest rate cap on medical debt by amending the state's existing laws on interest and usury. Specifically, the bill defines medical debt as an obligation to pay for healthcare services, products, or devices owed to a healthcare facility or professional. It limits the interest rate on such debt to a range between 1.5% and 4% per annum, based on the weekly average one-year constant maturity Treasury yield published by the Federal Reserve Board. The interest rate will be determined by the Treasury yield in the calendar week before the patient receives their first bill. Importantly, patients receiving financial assistance will be exempt from both interest and late fees. The new interest rate provisions will only apply to new medical debt incurred after the bill's effective date, which is immediate upon passage. This legislation aims to protect consumers from potentially high interest rates on medical bills by establishing a standardized, relatively low-interest rate cap.

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