Vermont 2025-2026 Regular Session Status: Enacted Bipartisan · 15 D · 6 R · 1 I cosponsors

S 27 — An act relating to medical debt relief and excluding medical debt from credit reports

Last action — Senate Message: Signed by Governor May 15, 2025

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 29, 2025. Enacted.

Signed by Governor Phil Scott (Republican) on May 16, 2025.

Prognosis

Likely to advance 78% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 22 sponsors

    22 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 3 parties (15 D · 6 R · 1 I) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

This act provides medical debt relief and restricts reporting medical debt on credit reports.

The act allocates $1 million for a nonprofit to repay certain medical debts for eligible Vermonters. It also prohibits credit reporting agencies from including medical debt in credit reports.

What this means for you
  • Consumers: This means consumers in Vermont may receive assistance with unpaid medical debts and won't have those debts affect their credit scores.

Bill Text

What changed in the latest version

125 added · 108 removed

Plain-language change summary

The updated version of Bill S.27 includes minor adjustments, primarily in the formatting and structuring of the text. However, the core provisions remain the same: the bill allows the State Treasurer to hire an entity to buy and cancel medical debts for Vermonters with lower incomes or significant medical debt burdens. It also emphasizes that once the debt is handled, any negative credit report information linked to that medical debt must be removed. These changes matter because they help protect vulnerable Vermonters from the lasting financial impact of medical debt, improving their creditworthiness and overall financial stability.

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AS PASSED BY SENATE S.27 Page 1 of 5 S.27 An act relating to medical debt relief and excluding medical debt from credit reports It is hereby enacted by the General Assembly of the State of Vermont:
BILL AS INTRODUCED AND PASSED BY SENATE S.27 Page 1 of 6 S.27 Introduced by Senators Lyons, Baruth, Beck, Bongartz, Brennan, Chittenden, Clarkson, Collamore, Cummings, Gulick, Hardy, Harrison, Hart, Hashim, Major, Norris, Plunkett, Ram Hinsdale, Vyhovsky, Watson, Westman and White Referred to Committee on Health and Welfare Date:
January 29, 2025 Subject:
Health;
consumer protection;
credit reporting;
medical debt Statement of purpose of bill as introduced:
This bill proposes to direct the State Treasurer to contract with an entity to acquire and abolish certain medical debts for Vermonters with incomes at or below 400 percent of the federal poverty level or who owe medical debt equal to five percent or more of their household income.
The bill would also prohibit credit reporting agencies from reporting or maintaining information on Vermonters’ medical debt and would prohibit health care providers from reporting medical debt to credit reporting agencies.
An act relating to medical debt relief and excluding medical debt from credit reports BILL AS INTRODUCED AND PASSED BY SENATE S.27 Page 2 of 6 It is hereby enacted by the General Assembly of the State of Vermont:
VT LEG #381903 v.1 AS PASSED BY SENATE S.27 Page 2 of 5 (1) the debtor shall be a Vermont resident who either has a household income that is at or below 400 percent of the federal poverty level for the applicable household size or who owes medical debt in an amount that is five percent or more of the debtor’s household income;
(1) the debtor shall be a Vermont resident who either has a household income that is at or below 400 percent of the federal poverty level for the BILL AS INTRODUCED AND PASSED BY SENATE S.27 Page 3 of 6 applicable household size or who owes medical debt in an amount that is five percent or more of the debtor’s household income;
§ 2466d is added to read:
§ 2466d is added to read:
§ 2466d.
§ 2466d.
REPORTING OF MEDICAL DEBT INFORMATION PROHIBITED A credit reporting agency shall not report or maintain in the file on a consumer information relating to a medical debt, as defined in 18 V.S.A.
§ 9481.
Sec.
3.
9 V.S.A.
§ 2466d is added to read:
§ 2466d.
(1) “Health care services” means services for the diagnosis, prevention, treatment, cure, or relief of a physical, dental, behavioral, or mental health VT LEG #381903 v.1 AS PASSED BY SENATE S.27 Page 3 of 5 condition or substance use disorder, including counseling, procedures, products, devices, and medications.
BILL AS INTRODUCED AND PASSED BY SENATE S.27 Page 4 of 6 (1) “Health care services” means services for the diagnosis, prevention, treatment, cure, or relief of a physical, dental, behavioral, or mental health condition or substance use disorder, including counseling, procedures, products, devices, and medications.
§ 2480b is amended to read:
§ 2480b is amended to read:
* * * VT LEG #381903 v.1 AS PASSED BY SENATE S.27 Page 4 of 5 (F) where the request for a credit report is related to a credit transaction entered into prior to January 1, 1993;
* * * (F) where the request for a credit report is related to a credit transaction entered into prior to January 1, 1993;
or (G) where the request for a credit report is by the Vermont Department of Taxes and is used for the purpose of collecting or investigating delinquent taxes;
or BILL AS INTRODUCED AND PASSED BY SENATE S.27 Page 5 of 6 (G) where the request for a credit report is by the Vermont Department of Taxes and is used for the purpose of collecting or investigating delinquent taxes;
§ 2480g is amended to read:
§ 2480g is amended to read:
PROHIBITION ON SALE OR REPORTING OF MEDICAL DEBT VT LEG #381903 v.1 AS PASSED BY SENATE S.27 Page 5 of 5 (a)(1) No large health care facility shall sell its medical debt except as provided in subdivision (2) of this subsection.
PROHIBITION ON SALE OR REPORTING OF MEDICAL DEBT (a)(1) No large health care facility shall sell its medical debt except as provided in subdivision (2) of this subsection.
(2) A large health care facility may sell or otherwise transfer its medical debt to an organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code for the specific purpose of the tax-exempt organization abolishing the medical debt of one or more patients by cancellation of the indebtedness.
BILL AS INTRODUCED AND PASSED BY SENATE S.27 Page 6 of 6 (2) A large health care facility may sell or otherwise transfer its medical debt to an organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code for the specific purpose of the tax-exempt organization abolishing the medical debt of one or more patients by cancellation of the indebtedness.
VT LEG #381903 v.1
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Amendments

2 amendments

Click Show changes on an amendment above to see how it modifies the bill.

Action History

  1. Senate Message: Signed by Governor May 15, 2025

  2. Signed by Governor on May 15, 2025

  3. Delivered to Governor on May 9, 2025

  4. As passed by Senate and House

  5. House message: House concurred in Senate proposal of amendment to House proposal of amendment

  6. Senate proposal of amendment to House proposal of amendment concurred in

  7. Action Calendar: Senate Proposal of Amendment to House Proposal of Amendment

  8. Notice Calendar: Senate Proposal of Amendment to House Proposal of Amendment

  9. Senate Message: House proposal of amendment concurred in with further proposal of amendment thereto

  10. House proposal of amendment concurred in with further proposal of amendment as moved by Senator(s) Lyons and Perchlik

  11. House proposal of amendment; text

  12. Consideration resumed

  13. Pending question: Shall the Senate concur in the House proposal of amendment??

  14. Proposal of amendment to be offered by Senator(s) Lyons and Perchlik

  15. Unfinished Business/House Proposal of Amendment

  16. Consideration postponed without objection

  17. House proposal of amendment; text

  18. New Business/House Proposal of Amendment

  19. House proposal of amendment

  20. Entered on Notice Calendar

  21. House message: House passed bill in concurrence with proposal(s) of amendment

  22. Read third time and passed in concurrence with proposal of amendment

  23. Action Calendar: Third Reading

  24. Third Reading ordered

  25. Report of Committee on Health Care, as amended, agreed to

  26. Rep. Donahue of Northfield and Black of Essex moved to amend the report of the Committee on Health Care, as amended, which was agreed to

  27. Rep. Black of Essex, Berbeco of Winooski, Cina of Burlington, Cordes of Bristol, Critchlow of Colchester, Demar of Enosburgh, Goldman of Rockingham, Houghton of Essex Junction, McFaun of Barre Town, Page of Newport City, and Powers of Waterford moved to amend the report of the Committee on Health Care, which was agreed to

  28. Rep. Feltus of Lyndon recommended for the Committee on Ways and Means

  29. Rep. Nigro of Bennington recommended for the Committee on Appropriations

  30. Rep. Page of Newport City reported for the Committee on Health Care

  31. Read second time

  32. Action Calendar: Favorable with Amendment

  33. Notice Calendar: Favorable with Amendment

  34. Referred to Committee on Ways and Means per Rule 35(a)

  35. Action Calendar: Favorable with Amendment

  36. Notice Calendar: Favorable with Amendment

  37. Referred to Committee on Appropriations per Rule 35(a)

  38. Notice Calendar: Favorable with Amendment

  39. Read first time and referred to the Committee on Health Care

  40. Read 3rd time & passed

  41. New Business/Third Reading

  42. 3rd reading ordered

  43. Recommendation of amendment by Committee on Health and Welfare agreed to

  44. Reported favorably by Senator Lyons for Committee on Appropriations

  45. Read 2nd time, reported favorably with recommendation of amendment by Senator Cummings for Committee on Health and Welfare

  46. Favorable report by Committee on Appropriations

  47. Favorable report with recommendation of amendment by Committee on Health and Welfare

  48. New Business/Second Reading

  49. Favorable report by Committee on Appropriations

  50. Favorable report with recommendation of amendment by Committee on Health and Welfare

  51. Second Reading

  52. Entered on Notice Calendar

  53. Referred to Committee on Appropriations per Senate Rule 31

  54. Favorable report with recommendation of amendment by Committee on Health and Welfare

  55. Second Reading

  56. Entered on Notice Calendar

  57. Committee on Judiciary relieved; bill committed to Committee on Health and Welfare on motion of Senator Hashim

  58. Read 1st time & referred to Committee on Judiciary

Sponsors

Sponsorship breakdown

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22 sponsors · 0 co-sponsors · 168 not signed on

Sponsors (22)

Co-sponsors (0)

None.

Not signed on (168)

168 members have not signed on to this bill.

Show all 168 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance healthcare
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors S 27?
S 27 is sponsored by Rebecca "Becca" E White (Democrat), Richard A Westman (Republican), Anne E Watson (Democrat/Progressive), Tanya C Vyhovsky (Progressive/Democrat), Robert Plunkett (Democrat), Robert W Norris (Republican), Joseph "Joe" D Major (Democrat), Nader A Hashim (Democrat), Larry Hart (Republican), Wendy K Harrison (Democrat), Ruth E Hardy (Democrat), Martine Larocque L Gulick (Democrat), Ann E Cummings (Democrat), Brian P Collamore (Republican), Alison Clarkson (Democrat), Thomas I Chittenden (Democrat), Patrick "Pat" M Brennan (Republican), Seth Bongartz (Democrat), Scott L Beck (Republican), Philip E Baruth (Democrat/Progressive), Virginia "Ginny" V Lyons (Democrat), and Kesha K Ram Hinsdale (Democrat).
What is the current status of S 27?
This bill has been enacted into law. Introduced January 29, 2025. Enacted.
Where can I track S 27?
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