Medical Debt Cancellation Act

This bill creates a federal grant program to cancel eligible medical debt owed to hospitals by patients. Hospitals can apply for competitive grants to eliminate debt for low-income patients, prioritizing safety-net hospitals serving emergency care patients with debt under 15 months old. It also establishes new rules requiring clear billing statements, banning interest on overdue medical bills, and restricting credit reporting of medical debt. The program aims to reduce financial barriers for patients while expanding to other providers within two years. Patients with specific medical debt types - like emergency care costs from uninsured or low-income individuals - would directly benefit from these changes.