Bill > H419

This bill introduces comprehensive protections for consumers with medical debt by establishing the Medical Debt Protection Act (Chapter 93M). The legislation prohibits medical creditors and debt collectors from selling medical debt to debt buyers or reporting medical debt to consumer reporting agencies, effectively shielding patients from negative credit impacts. The bill sets strict limitations on extraordinary collection actions, requiring a 180-day waiting period before any collection efforts and mandating that medical creditors provide advance notice before pursuing collection. Additionally, the bill prevents medical creditors from pursuing collections while an internal or external review of a health insurance decision is pending. The legislation also caps interest rates on medical debt judgments at 12% initially, reducing to 3% for judgments entered after January 1, 2026, and provides significant property exemptions for consumers, protecting homestead estates, up to $5,000 in savings, vehicles worth up to $15,000, and child support income from seizure. Furthermore, the bill protects employees from workplace discrimination due to medical debt garnishments, with potential penalties for employers who take adverse actions. The law will apply to medical debts incurred and contracts renewed on or after January 1, 2027, with the act taking effect on October 1, 2025, marking a significant effort to alleviate the financial burden of medical debt on patients and families.

Labor and Employment

https://malegislature.gov/Bills/194/H419