Bill > S672

This bill establishes comprehensive protections for North Carolina residents against medical debt through the Medical Debt Protection Act. The legislation requires large health care facilities to develop medical debt mitigation policies that provide financial assistance to patients based on their household income, with patients at or below 300% of the federal poverty level receiving free care, and those up to 600% receiving sliding scale discounts. The bill prohibits extraordinary collection actions like selling debt, seizing property, or causing arrest, and limits interest rates on medical debt to 2% per year. Medical facilities must offer payment plans of at least 36 months with monthly payments not exceeding 5% of household income, provide clear information about financial assistance in multiple languages, and publicize their policies widely. The bill also establishes an appeals process for financial assistance denials, prevents facilities from requiring credit card pre-authorization before treatment, and allows patients to sue for violations with potential treble damages. Large health care facilities must annually report detailed information about their financial assistance programs to the Department of Health and Human Services, which will create a public database. The law becomes effective June 1, 2025, and aims to reduce the burden of medical debt by providing robust consumer protections and ensuring patients have access to affordable healthcare financial options.

https://www.ncleg.gov/BillLookUp/2025/S672