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

This bill, H 4809, directly affects patients with medical debt, healthcare providers, and debt collectors by restricting how medical debt can be collected and reported. Key provisions ban medical creditors from selling medical debt to debt buyers or reporting it to credit bureaus, prohibit aggressive collection tactics (like wage garnishment or liens) for 180 days after billing, and limit interest rates on medical debt to 12% (or 3% after 2026). It also requires advance notice before collection actions and protects patients during insurance appeals. These changes aim to reduce financial harm from medical debt by limiting credit damage and harsh collection practices.