SB 414 — CONSUMERS: Provides for the Louisiana Medical Debt Protection Act. (gov sig)

SLS 26RS-648 REENGROSSED Regular Session ENROLLED SENATE BILL NO.

414 BY SENATOR TALBOT CONSUMERS.AND REPRESENTATIVES CARVER, CHASSION, FISHER, FREEMAN,JACKSON,KERNER,MANDIELANDRY,MARCELLE, MARTINEZ, RISER AND STAGNI AN ACT To enact Chapter 15 of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised of R.S.

Provides for the Louisiana Medical Debt Protection Act.

(gov sig) AN ACT To enact Chapter 15 of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised of R.S.

Short title ThisChaptershallbeknownandmaybecitedastheLouisianaThis Chapter shall be known and may be cited as the "Louisiana Medical Debt Protection Act.Act".

Definitions As used in this Chapter, the following terms shall have the following meanings:

(1) "Medical creditor" means any entity that provides healthcare services and to whom the consumer owes money for healthcare servicesservices, or the entity that provided healthcare services and to whom the consumer previously owed money if the medical debt has been purchased by one or more debt Page 1 of 43 Coding:

SLS 26RS-648 REENGROSSED SB NO.

414 entityENROLLED that provided healthcare services and to whom the consumer previously owed money if the medical debt has been purchased by one or more debt buyers.

(2)(2)(a) "Medical debt" means debt arising from healthcare services, including products, devices, durable medical equipment, and prescription drugs, and from the provisions of transportation to healthcare services.

(b) "Medical debt" does not include either of the following:

(a)(i) An open-end or closed-end extension of credit made by a federally insured financial institution, its subsidiaries, or affiliates.

(b)(ii) A debt charged to a credit card.

(4) "Medically necessary care" means healthcare services, products, or medications that a licensed healthhealthcare care provider determines are necessary to prevent, diagnose, or treattreatan an illness, injury, disease, or its symptoms, and that meet accepted standards of care.

Interest rate limitation InterestonInterestonmedicaldebtarising medicaldebtarisingfrommedicallynecessarycareshallfrommedically notnecessarycareshallnot exceed three percent per annum.

Page44:1 2et seq., with the exception of 4the Coding:complainant's name, address, or other personal identifying information, which shall be considered confidential and redacted from the complaint.

Page 2 of 3 Coding:

SLS 26RS-648 REENGROSSED SB NO.

414 44:1ENROLLED etSection seq.,2. with the exception of the complainant's name, address, or other personal identifying information, which shall be considered confidential and redacted from the complaint.

Section 2.

If vetoed bythe governorand subsequentlyapprovedsubsequentlyapprovedbythe bythe legislature, this Act shall become effective on the dayfollowing such approval.

ThePRESIDENT originalOF instrumentTHE andSENATE theSPEAKER followingOF digest,THE whichHOUSE constitutesOF noREPRESENTATIVES partGOVERNOR ofOF theTHE legislativeSTATE instrument,OF wereLOUISIANA preparedAPPROVED: bySenate Legislative Services.

ThePage keyword,3 summary, and digest do not constitute part of the3 lawCoding: or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] DIGEST SB 414 Reengrossed 2026 Regular Session Talbot Proposedlawdefinestheterms"medicalcreditor","medicaldebt","medicaldebtcollector", and "medically necessary care".

Proposed law limits interest on medical debt arising from medically necessary care to no morethan3%perannumandprovidesthatanycontractualprovision imposingahigherrate is void.

Proposed law authorizes the attorney general to seek civil penalties for violations under proposed law and further requires the attorneygeneral to establish a complaint process for alleged violations, that are subject to public records laws, except for any complaint with personal identifying information.

Effective upon signature of the governor or lapse of time for gubernatorial action.

(Adds R.S.

51:1501-1504) Summary of Amendments Adopted by Senate Committee Amendments Proposed bySenate Committee on Commerce,Consumer Protection, and International Affairs to the original bill 1.

Excludes from the definition of "medical debt" any loan or credit issued by federallyinsured financial institution or its affiliates, as wellasanyamounts charged to a credit card.

2.

Increases the cap on interest for medical debt arising from medically necessary care from 2% to 3% per annum.

3.

Removes provisions that prohibits wage or bank account garnishment and placing a lien on or foreclosure against a person's primary residence or vehicle forcollectionofmedicaldebtarisingfrommedicallynecessarycare.

4.

Removes requirementthat healthcareproviders or medical creditors include Page 3 of 4 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-648 REENGROSSED SB NO.