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Patient Debt Relief: New Hospital Rules and Protection Against Aggressive Collection

This Act establishes strict new standards for financial assistance and medical debt collection that hospitals participating in Medicare must follow. Citizens gain protection from aggressive collection tactics like home foreclosure or wage garnishment. Furthermore, a grant program is created to allow non-profit organizations to acquire and discharge medical debt for eligible individuals.
Key points
Hospitals are prohibited from placing liens on homes or garnishing wages to collect medical debt.
Low-income individuals (under 250% of the poverty line) are protected from interest charges and the sale of their debt to collectors.
A grant program will be established to allow non-profits to cancel medical debt for qualifying citizens.
Hospitals must offer repayment plans with minimum monthly payments (capped at 4% of gross income) before selling debt to a collector.
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Expired
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Additional Information
Print number: 118_HR_9129
Sponsor: Rep. Vasquez, Gabe [D-NM-2]
Process start date: 2024-07-24
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Patient Debt Relief Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9129.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-07-24.

What are the main provisions?

Key points include:

  • Hospitals are prohibited from placing liens on homes or garnishing wages to collect medical debt.
  • Low-income individuals (under 250% of the poverty line) are protected from interest charges and the sale of their debt to collectors.
  • A grant program will be established to allow non-profits to cancel medical debt for qualifying citizens.
  • Hospitals must offer repayment plans with minimum monthly payments (capped at 4% of gross income) before selling debt to a collector.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Vasquez, Gabe [D-NM-2].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Health.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Health Benefits Economy