Bill > SB0702

This bill, titled the "medical debt protection act," aims to shield individuals from aggressive debt collection practices related to medical expenses. It prohibits charging interest or late fees on medical debt for at least 90 days after the final invoice, and caps any subsequent interest or late fees at 3% annually. The act also restricts "extraordinary collection actions," which include reporting to credit bureaus, denying or deferring emergency or urgent care due to unpaid debt, and using legal processes like liens, foreclosures, wage garnishment, or civil lawsuits. Furthermore, it mandates that medical creditors must have legally binding agreements with medical debt buyers, ensuring these buyers also adhere to interest rate caps, refrain from extraordinary collection actions, and allow for debt return if the patient qualifies for financial assistance. Before any extraordinary collection action can be taken, a notice must be provided to the patient at least 30 days in advance, outlining available financial assistance and the specific actions to be pursued. Violations of this act will be treated as prohibited practices under the Michigan consumer protection act. This bill is contingent on the enactment of Senate Bill No. 701 of the 103rd Legislature.

Budget and Finance, Health and Social Services

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0702