Senate Bill 321 - Medical Debt De-Weaponization Act

• Large health care facilities must develop written Medical Debt Mitigation Policies (MDMP) that include financial assistance programs, plain language summaries, eligibility criteria, and application processes for emergency and medically necessary care.

• Interest on medical debt is capped at a rate between 2-5% per annum based on the weekly average one-year Treasury yield, with patients eligible for financial assistance exempt from interest and late fees.

• Medical creditors and debt collectors are prohibited from extraordinary collection actions (lawsuits, wage garnishment, asset seizure, credit reporting) for 180 days after first bill, and must provide 30-day notice before taking collection actions with plain-language summary of available financial assistance.

• Large health care facilities must post price information online listing gross charges and Medicare reimbursement amounts, translate financial assistance materials into 10+ languages, and submit annual reports to the Department of Health and Human Services.

• Health care providers cannot charge facility fees except on hospital main campuses or at facilities with emergency departments, and cannot charge facility fees for outpatient evaluation and management services; violations are enforceable as unfair and deceptive trade practices with penalties up to $1,000 per occurrence.