Bill > HB1859

This bill, known as the "Freedom from Medical Debt Act," establishes a program where the state treasurer will contract with a nonprofit organization to purchase and repay medical debts for eligible Tennessee residents. Eligibility is determined by either having a household income at or below 400% of the federal poverty level or owing medical debt that amounts to 5% or more of their household income, provided the debt is over 120 days old and reasonable collection attempts have been made. Crucially, this act also prohibits healthcare providers from reporting a patient's medical debt to consumer reporting agencies, which are entities that compile and sell consumer credit information, and prevents these agencies from including medical debt on consumer reports, starting July 1, 2026. The nonprofit entity will acquire these debts from healthcare providers at fair market value and ensure that any negative information related to the debt is removed from a patient's consumer report after repayment. The bill clarifies that the state is not financially obligated for these repayments, which will be solely the responsibility of the nonprofit entity.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1859&ga=114