H1039 - Medical Debt Protection Act

• Requires large health care facilities to develop written Medical Debt Mitigation Policies (MDMP) that provide financial assistance, including free care for patients at 0-200% of federal poverty level and tiered discounts up to 600% of poverty level.

• Caps interest rates on medical debt at 2-5% annually (based on Treasury yields) and prohibits late fees for patients receiving financial assistance; establishes 24-month minimum payment plans with no payments due within first 90 days.

• Prohibits extraordinary collection actions (liens, wage garnishment, lawsuits, credit reporting) for 180 days after first bill and requires 30-day notice before any collection actions; requires reversal of collections if patient qualifies for assistance.

• Mandates large health care facilities post price information online, provide 2-page plain language policy summaries, and translate materials into 10 most common limited English proficiency languages in their service area.

• Creates private right of action allowing consumers to sue for treble damages, establishes Attorney General enforcement authority, and requires facilities to report annual data to Department of Health and Human Services; effective October 1, 2022.