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SB 347

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO THE MEDICAL DEBT PROTECTION ACT

153rd General Assembly (2025-2026) Introduced by Kerri Harris and 2 co-sponsors

SB 347 strengthens protections for consumers by improving medical debt collection rules, including clearer disclosures, dispute rights, and hardship options.

Passed By House. Votes: 40 YES 1 ABSENT
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WeVote Research Nonpartisan
Bill Summary · SB 347

Summary of SB 347 (Session 153, Delaware)

Purpose and intent

SB 347 proposes amendments to Title 6 of the Delaware Code related to the Medical Debt Protection Act. The bill is aimed at strengthening protections for consumers against medical debt by clarifying, expanding, or refining standards and procedures governing medical debt collection, reporting, and related consumer rights. The act’s overarching goal is to reduce burdens on individuals facing medical expenses and to promote fair treatment in the collection process.

Key provisions and changes (anticipated elements)

Note: The exact text of SB 347 is not provided here, but the bill title and typical "Medical Debt Protection Act" reforms commonly address several core areas. Based on the bill’s scope, potential provisions may include:

  • Definitions and scope: Clarification of what counts as medical debt, covered entities (healthcare providers, insurers, collection agencies), and applicable timelines for disputes.
  • Notice and disclosure requirements: Requirements for lenders or collection agencies to provide clear, timely notices about medical debt, including itemized charges, interest, and any applicable state protections.
  • Medical debt collection practices: Restrictions on certain aggressive or unfair practices (e.g., prohibiting certain collection actions until a specified period after service or discharge, limits on after-hours calls, and prohibitions on misrepresentations).
  • Dispute and validation processes: Procedures for consumers to dispute medical debt, request validation, and obtain documentation of charges, assignments, or payments.
  • Financial hardship and exemptions: Provisions for deferment, payment plans, or caps on certain fees for individuals experiencing financial hardship or those enrolled in income-driven programs.
  • Reporting and data sharing: Standards for reporting medical debt to credit reporting agencies and requirements to correct or remove erroneous entries upon validation.
  • Enforcement and penalties: Remedies for violations, including potential civil penalties, enforcement by state agencies, and private rights of action.
  • Interaction with insurance and providers: Provisions addressing how insurance denials, underpayments, or billing errors are handled and how they impact downstream collection efforts.
  • Consumer education: Requirements for providers and payers to offer or provide access to consumer information about medical billing rights and available assistance programs.

Who would be affected

  • Consumers/patients: Individuals facing medical bills would gain enhanced protections, clearer dispute rights, and potential relief from abusive collection practices.
  • Healthcare providers and hospitals: Lower-risk of aggressive collection tactics and possible compliance obligations related to notices, validation, and reporting.
  • Medical debt collection agencies: Entities involved in collecting medical debt would need to adjust practices to meet new standards and restrictions.
  • Insurance providers: Insurers may be impacted by changes in how medical charges are billed, disputed, and shared with collection entities.
  • Credit reporting agencies: Changes to reporting requirements and error correction processes could affect how medical debt is reported and amended.

Procedural and timeline aspects

  • Committee stage: The bill was introduced and assigned to the Banking, Business, Insurance & Technology Committee in the Senate on June 16, 2026. This indicates initial review and potential hearings within that committee.
  • ** sponsors**: Primary sponsors include Brian Pettyjohn and Spiros Mantzavinos, with a co-sponsorship indicating cross-party or collaborative support.
  • Next steps: If advanced, the bill would proceed through committee deliberations, potential amendments, and floor votes in the Senate, followed by the House of Representatives (or vice versa if a parallel process applies), and eventually to the governor for signature or veto. Specific timelines would be determined by the legislative calendar and any floor actions or amendments adopted during committee or chamber debates.

Practical impact considerations

  • The bill could reduce wrongful or excessive collection pressure on patients, improve transparency of medical billing, and provide clearer avenues for disputing charges.
  • Implementation would require training for providers, payers, and collection entities to comply with new disclosures, validation standards, and hardship policies.
  • Depending on the final text, there could be financial implications for healthcare providers (compliance costs) and for consumers (improved protection and potential access to more manageable payment options).

If you can provide the bill’s full text or specific sections, I can produce a more precise, section-by-section summary with exact language, definitions, and statute revisions.

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

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