VT H0112

Appropriates $1,000,000 from the General Fund in fiscal year 2026 for the State Treasurer to contract with a nonprofit entity to purchase and abolish medical debt at fair market value for eligible Vermont residents

Eligibility for debt relief requires household income at or below 400% of federal poverty level, or medical debt equal to 5% or more of household income, with outstanding balances after provider collection efforts

Prohibits credit reporting agencies from reporting or maintaining any medical debt information in Vermont consumer files

Prohibits large health care facilities and medical debt collectors from reporting medical debt to credit reporting agencies, and bars sale of medical debt except to 501(c)(3) organizations for debt abolition purposes

Effective date is July 1, 2025