TN HB1859

State treasurer must contract with a nonprofit entity to purchase and eliminate medical debt for eligible Tennessee residents at fair market value, with $1,000,000 in interest earnings allocated for fiscal year 2026-2027

Eligibility requires Tennessee residency plus either household income at or below 400% of federal poverty level, or medical debt totaling 5% or more of gross annual household income, with bills outstanding more than 120 days

Beginning July 1, 2026, healthcare providers are prohibited from reporting medical debt to consumer reporting agencies, and consumer reporting agencies cannot include medical debt on credit reports

Hospitals and ambulatory surgical treatment centers may sell medical debt to nonprofit entities specifically for debt elimination purposes

Violations constitute unfair or deceptive practices under the Tennessee Consumer Protection Act, enforceable by the attorney general with full investigative authority