An Act alleviating the burden of medical debt for patients and families
By Mr. Cronin, a petition (accompanied by bill, Senate, No. 214) of John J. Cronin relative to alleviating the burden of medical debt for patients and families. Consumer Protection and Professional Licensure.
Bill Information
Bill Information
- Presenter:
- John J. Cronin
- Status:
- Referred to Senate Committee on Ways and Means
The Medical Debt Protection Act regulates the collection of medical debts in Massachusetts. Extraordinary collection actions, which include actions like causing a consumer’s arrest or foreclosing on property, are prohibited, and any permissible collection attempts must be delayed until at least 180 days after the initial billing date. Additionally, debt collectors are required to provide at least 30 days’ notice before initiating collection actions.
The bill prevents medical creditors or debt collectors from reporting unpaid medical bills to credit agencies or initiating collection communications while a debt is under appeal. Medical debt interest rates are capped at the lesser of 3% or an annual rate tied to the preceding week’s treasury yield. The bill includes protective measures for personal assets, safeguarding homesteads up to $800,000 and $5,000 in cash from seizure. Garnishments may not significantly affect a debtor's livelihood and employers cannot discriminate against employees due to wage garnishments for medical debt.
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