Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Patient Debt Relief Act imposes new financial assistance and debt collection standards on hospitals that participate in Medicare, effective January 1, 2028. Hospitals must establish publicly available charity care or financial assistance policies, determine patient eligibility within 30 days of treatment, and provide clear billing notices explaining assistance options and collection limits. The law prohibits hospitals from placing liens on homes or garnishing wages to collect medical debt, and restricts selling debt to collection agencies until after one year without payment—and only if the patient rejects a repayment plan capped at 4 percent of monthly income. For low-income patients earning up to 250 percent of the poverty line, hospitals cannot charge interest or sell their debt. The bill also creates a $100 million grant program for nonprofit organizations to identify and discharge medical debt for individuals whose medical bills exceed 5 percent of their income or whose household income doesn't exceed 400 percent of the poverty line. Hospitals that fail to comply face civil penalties up to $1 million, and the government will conduct annual audits and maintain a public reporting system for complaints starting in 2028.
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