H4809 — An Act alleviating the burden of medical debt for patients and families

Summary

An Act alleviating the burden of medical debt for patients and families

Bill Text

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The bill establishes new provisions for protecting consumers from medical debt collectors and ensures certain rights regarding medical debt in Massachusetts.

• Chapter 93

  Section 24L. A consumer who successfully defends themselves against a civil action to collect an alleged debt brought by a creditor, a debt collector or a third party loan servicer shall be entitled to reasonable attorneys' fees and costs.

  Adds a new section to provide consumers who defend against debt collection actions the right to recover their attorney's fees.

• Chapter 93, section 49

  (e) For a medical debt, the creditor: (i) uses an automatic call or robocall; (ii) communicates or implies that medical care will be withheld from the alleged debtor until the medical debt is paid; (iii) fails to advise the alleged debtor of the option to contact an attorney or contact the attorney general; or (iv) violates any other provision of this section.

  Adds specific prohibited practices related to the collection of medical debt by creditors.

• Chapter 93, section 52(a)

  the words 'Any other adverse item of information which antedates the report by more than seven years.' → Any item of information concerning medical debt, as defined by section 1 of chapter 93M. Any other adverse item of information which antedates the report by more than seven years.

  Modifies the conditions under which medical debt information can be reported to credit agencies.

• Chapter 93, section 52(b)

  The provisions of subsection (a) → Except as provided in clause (6), the provisions of subsection (a)

  Adjusts the applicability of subsection (a) for medical debts.

• CHAPTER 93M. MEDICAL DEBT PROTECTION ACT. Section 1. As used in this chapter, the following words shall have the following meanings unless the context clearly requires otherwise: ...

  Creates a new chapter specifically addressing medical debt protections.

• Chapter 93M, Section 2(a)

  Notwithstanding any general or special law to the contrary, no medical creditor or medical debt collector shall sell medical debt to a debt buyer.

  Prohibits the sale of medical debt from creditors to debt buyers.

• Chapter 93M, Section 2(b)

  Notwithstanding any general or special law to the contrary, no medical creditor or medical debt collector shall report any item of information concerning medical debt to a consumer reporting agency.

  Bans reporting medical debt to credit agencies.

• Chapter 93M, Section 3(a)

  No medical creditor or medical debt collector shall engage in any permissible extraordinary collection actions until 180 days after the first bill for a medical debt has been sent.

  Establishes a waiting period before creditors can take extraordinary collection actions for medical debts.

• Chapter 93M, Section 7(a)

  the words 'Notwithstanding section 34 of chapter 235' → Notwithstanding section 34 of chapter 235, if a consumer’s earnings are attached to satisfy a judgment for collection of a medical debt...

  Provides specific protections regarding wage garnishment for medical debts.

• Chapter 111, Section 2K(a)

  No hospital, acute care hospital, clinic or other health care facility licensed pursuant to this chapter shall deny a person medically necessary health care solely by reason of the person’s unpaid medical debt.

  Prohibits healthcare facilities from denying necessary care due to unpaid medical debt.

• Chapter 112, Section 1C(a)

  No health care provider licensed, registered or certified pursuant to this chapter shall deny a person medically necessary health care solely by reason of the person’s unpaid medical debt.

  Similar to the previous change, it also protects patients from being denied care by healthcare providers.

• Chapter 93M of the General Laws shall apply to consumer medical debts incurred and contracts that take effect or are renewed on or after January 1, 2027.

  Establishes a future effective date for the provisions of the new medical debt chapter.

• This act shall take effect on October 1, 2026.

  Sets an effective date for the entire act.

Sponsors

• Joint Committee on Consumer Protection and Professional Licensure · Primary

Subjects