Bill > B26-0438

This bill, the Medical Debt Mitigation Amendment Act of 2025, aims to protect District residents from aggressive medical debt collection practices and ensure access to financial assistance. It mandates that healthcare facilities (referred to as "health care facility-FAP") collect and report detailed data on financial assistance provided, outstanding medical bills, and debt collection activities to the Department of Health. Crucially, these facilities must establish and publicize clear financial assistance policies, offering free or reduced-cost care to eligible patients based on their household income relative to the federal poverty level, and must provide payment plans with monthly installments not exceeding 3% of a patient's household income. The bill also prohibits healthcare providers and debt collectors from reporting medical debt to credit bureaus, garnishing wages for individuals with household incomes below 500% of the federal poverty level, or placing property liens on primary residences. Furthermore, it restricts healthcare providers from assisting patients with medical lending products (like medical credit cards or installment loans) before offering financial assistance screening, and prohibits requiring credit card pre-authorization before providing emergency services. Violations of these medical lending product restrictions will be considered unfair or deceptive trade practices. The bill also limits hospital liens on patient recoveries to 33% of the award and prevents the revival of judgments for medical debt collection.