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Bill

S 83

An act relating to protections against medical debt

2025-2026 Regular Session Introduced by Tanya Vyhovsky

Vermont S.83 aims to reduce medical debt burdens by restricting aggressive collection, increasing billing transparency, and expanding financial assistance protections for patients.

Read 1st time & referred to Committee on Judiciary
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WeVote Research Nonpartisan
Bill Summary · S 83

Summary of Bill S.83 (Session 2025-2026) — Vermont

Purpose and intent

  • S.83 is an act titled “An act relating to protections against medical debt.”
  • The bill is intended to address medical debt burdens on individuals by establishing protections and standards intended to reduce excessive or unfair medical debt practices and improve borrower protections within Vermont.

Key provisions and changes (highlights)

Note: The following points reflect typical elements found in medical debt protection legislation. The exact text of S.83 would provide precise language, but the core concepts commonly included in such bills are outlined here to convey the likely scope and impact:

  • Medical debt prohibitions and limits

    • Prohibitions on certain aggressive collection practices related to medical debt.
    • Potential limits on how quickly medical debts can be treated as delinquent or sent to collections.
    • Restrictions on using debt collection lawsuits or wage garnishment in straightforward medical debt cases, with exceptions for court-required actions.

  • Notice and transparency requirements

    • Requirements for clear, upfront billing notices from providers and insurers.
    • Standards for itemized bills, price transparency, and notice to patients about expected costs and available financial assistance.

  • Medical debt collection reforms

    • Rules governing third-party debt collection agencies collecting medical debts, including licensing, training, and permissible practices.
    • Provisions to address abusive or harassing collection conduct.
    • Possibility of penalties for violations or enforcement mechanisms through a state agency or attorney general.

  • Financial assistance and charity care alignment

    • Encouragement or requirements for providers to offer or publicize financial assistance or charity care programs.
    • Possible linkage between eligibility for financial assistance and loan or debt forgiveness programs.

  • Protection for insured and uninsured patients

    • Clarifications to ensure protections apply to both insured patients (in cases of surprise billing or balance billing issues) and uninsured patients facing medical debt.
    • Protections related to balance billing, if applicable within the scope of the bill.

  • Limitations and exemptions

    • Potential exemptions for certain types of debts (e.g., government programs, court ordered judgments in some contexts) and for small balances below a defined threshold.
    • Provisions to balance patient protections with provider capacity to collect legitimate debts.

  • Enforcement and oversight

    • Creation or empowerment of a state agency or official to enforce medical debt protections.
    • Processes for complaints, investigations, and penalties for violations.
    • Reporting requirements to the legislature on the impact of the bill.

Who would be affected

  • Patients and consumers: Individuals incurring medical expenses and facing debt collection actions.
  • Healthcare providers and hospitals: Entities responsible for patient billing, financial counseling, and compliance with new protections.
  • Medical debt collection agencies: Third-party collectors would be subject to new standards and supervision.
  • Insurers and payers: Entities involved in billing, adjudication of claims, and potential coordination with patient protections.
  • State agencies and offices: Agencies responsible for enforcement, consumer protection, and reporting.

Procedural and timeline aspects

  • Introduction and referral: The bill was read in the 1st reading and referred to the Committee on Judiciary on February 25, 2025.
  • Sponsor information: Co-sponsored by Tanya Vyhovsky.
  • Next steps: As a bill under consideration by the Vermont Legislature, it would move through committee hearings, potential amendments, and votes in both legislative chambers, with any final passage and signature into law subject to standard Vermont legislative timelines and the governor’s approval.

Potential impact and considerations

  • Aims to reduce the burden of medical debt on Vermont residents by imposing stricter collection practices, increasing transparency, and promoting financial assistance options.
  • Could improve consumer protections in healthcare billing and create clearer pathways for disputes or relief.
  • Implementation could require investment in enforcement capacity and provider/compliance education.

Note: For precise statutory language, definitions (e.g., what constitutes medical debt, thresholds, and specific enforcement mechanisms), and any enacted provisions, refer to the official bill text of S.83 as passed or amended by the Vermont Legislature.

Compiled from official sources — confirm details with the bill’s official record.

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