Model Medical Debt Protection Act (2024)

Model Medical Debt Protection Act (2024) replaces the 2019 model law.  The 2024 version requires for-profit hospitals, ambulatory surgical centers outpatient clinics, and health care professionals working in those settings to adopt financial assistance policies and establish certain screening procedures.  So would large health care practice groups. Patients below 300% of the federal poverty level (FPL) receive free care, those at 300% to 400% of the poverty level pay 25% of the Medicare rate up to a maximum of $2300, and limits are placed on obligations of those 400% to 600% of the poverty rate. Payment plans are required. No interest can be charged to those under 600% of the FPL and interest rates are limited for other patients. Credit reporting of medical debt is prohibited. Family members are shielded from obligation for the patient’s debt and other requirements are established for collection of medical debt. Patients have a private right of action for violations under the state UDAP statute. Provisions of this model law have been enacted in a number of states, including at least California, Colorado, Connecticut, Delaware, Maryland, New Mexico, New York, Oregon, Vermont, and Washington.