H 367 - Medical Debt De-Weaponization Act

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

• Caps annual out-of-pocket medical bills at $2,300 for patients earning up to 400% of federal poverty level and prohibits charging interest or late fees to patients who qualify for financial assistance.

• Prohibits extraordinary collection actions (wage garnishment, lawsuits, credit reporting, property liens) for at least 180 days after first bill and requires 30-day notice before any collection action; prohibits collection efforts during pending health insurance appeals.

• Limits interest rates on medical debt to a weekly average one-year Treasury yield (minimum 2%, maximum 5% per annum) and requires payment plans of at least 24 months with monthly payments not exceeding 5% of gross monthly income.

• Establishes enforcement mechanisms including private right of action with treble damages, Attorney General oversight, complaint process, and reporting requirements; takes effect October 1, 2023.