SB344 Summary

• Prohibits large health care facilities and medical debt collectors from charging interest, late fees, or prepayment penalties on medical debt.

• Requires large health care facilities and medical debt collectors to offer patients payment plans of at least 24 months with monthly payments not exceeding 5% of gross monthly income, with no initial payment due within 90 days.

• Restricts extraordinary collection actions including wage garnishment, bank account attachment, liens, foreclosure, arrest, and debt sale unless specific conditions are met; requires 180-day waiting period before such actions and 30-day advance notice to patient.

• Prevents reporting of medical debt to consumer reporting agencies for 1 year after initial billing; thereafter requires additional bill before reporting and prohibits reporting during pending health insurance appeals.

• Prohibits spouses and other individuals from being held liable for medical debt of adults age 18 or older unless they voluntarily consent in a separate standalone document not solicited during emergency situations.