VermontBiz Today, the Vermont House of Representatives voted to approve S.27, an act relating to medical debt relief and excluding medical debt from credit reports.
The bill would relieve Vermonters of qualifying medical debt and protect them from the long-term financial impact of that debt on their credit reports. It allocates $1 million to contract with a nonprofit to purchase and forgive certain medical debts and prohibit reporting medical debt to credit agencies.
“Vermonters should not face financial peril because they sought needed medical treatment and ended up falling into medical debt. Estimates show that 1 in 10 Vermonters are impacted by medical debt, ” said Vermont Speaker of the House, Representative Jill Krowinski. “With the passage of S.27, we are taking a powerful step to relieve that burden, protecting families from unfair credit penalties and showing that compassion and fiscal responsibility can go hand in hand. This bill is about dignity, economic fairness, and giving Vermonters the opportunity for a fresh start.”
The bill includes:
- Protects Credit Scores: Prohibits medical debt from being included in credit reports, shielding Vermonters from long-term financial harm due to health care costs.
- Expands Consumer Protections: Ensures fair debt collection practices for medical expenses and strengthens oversight of how medical debt is reported and used.
- Supports Financial Equity: Recognizes the disproportionate impact of medical debt on low- and middle-income families and works to level the playing field.
- Advances Health Care Affordability Goals: Aligns with broader efforts to reduce barriers to care and improve financial stability for Vermonters seeking medical treatment.
To learn more about the bill, visit the legislative website.
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