Bill > HB5255

This bill introduces the Medical Debt Protection Act, which establishes comprehensive protections for patients with medical debt. The legislation prohibits large healthcare facilities and medical debt buyers from charging interest or late fees on medical debt for the first 90 days after the final invoice's due date, and limits interest rates to a maximum of 3% per year. The bill restricts extraordinary collection actions, such as foreclosing on property, placing liens, causing arrests, or garnishing wages, especially for patients who qualify for financial assistance. Medical creditors must provide patients with a detailed notice at least 30 days before taking any collection actions, including information about potential financial assistance and a list of potential collection actions. The bill also regulates the sale of medical debt, requiring medical debt buyers to adhere to strict guidelines that prevent aggressive collection practices and ensure patients are not overcharged. If a patient overpays after receiving financial assistance, the healthcare facility must refund the excess amount within 60 days. Violations of the act are subject to enforcement under the Michigan Consumer Protection Act, providing legal recourse for patients who experience unfair medical debt collection practices. The bill is tied to another House Bill and will only take effect if that companion legislation is also enacted.

Health and Social Services

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5255