Bill
S 214
Massachusetts MEDAL Act creates Chapter 93M to protect patients: bans sale/reporting of medical debt, restricts aggressive collection actions, and caps post-judgment interest.
Note on sources and inconsistencies
- The provided bill text and docket identify this as a Massachusetts state bill (Senate No. 214 / Senate Docket No. 1878) titled the "Monetary Enhancement for Distinguished Active Legends Act of 2025 (MEDAL Act of 2025)" and its content creates a Massachusetts "Medical Debt Protection Act" (Chapter 93M).
- Some metadata (the short title about blue/green lights, committee referrals to Transportation, and a national list of U.S. Senate cosponsors) conflict with the Massachusetts bill text. This summary relies on the bill text supplied (medical debt protections under Massachusetts law). Where metadata conflicts, it is noted.
Summary — purpose and intent
- Purpose: To alleviate the burden of medical debt on patients and families by (1) restricting how medical debt is reported, sold, and collected, (2) limiting certain aggressive collection practices, and (3) capping post-judgment interest rates on medical debt judgments.
Key provisions and changes
- New Chapter 93M — "Medical Debt Protection Act": defines core terms (consumer, medical debt, medical creditor/debt collector/buyer, extraordinary collection action, etc.) and sets substantive consumer protections.
- Prohibitions on sale and reporting:
- Bars medical creditors and medical debt collectors from selling medical debt to debt buyers.
- Prohibits reporting any item of information concerning medical debt to consumer reporting agencies.
- Limits on extraordinary collection actions:
- Forbids specified extraordinary collection actions for medical debt, including: causing an arrest, obtaining a writ of body attachment/capias, and foreclosure on real property.
- Requires a 180‑day waiting period after the first medical bill is sent before any permissible extraordinary collection actions may begin.
- Requires a written notice at least 30 days before initiating extraordinary collections identifying the actions to be taken and the earliest date they will begin.
- Protections during appeals:
- If an internal review, external review, or another appeal of an insurance/coverage decision is pending or was pending within the prior 60 days, medical creditors/collectors may not communicate to collect, sue/arbitrate, or refer the debt to a collector.
- Interest limits on judgments:
- Generally limits interest on medical‑debt collection judgments to a fixed 12% per annum (referencing existing statutory interest provisions).
- For judgments entered or renewed on or after Jan 1, 2026, interest is limited to a fixed rate of 3% per annum (text is truncated but shows this effective date).
- Amendments to chapter 93, section 52:
- Replaces the existing clause (6) and adds clause (7), making “any item of information concerning medical debt” a separately specified item in that section, and adjusts subsection (b) to carve out clause (6) from certain provisions (text indicates an exception for medical debt).
Who is affected
- Consumers/patients and their families — reduced exposure to aggressive collection, reduced reporting of medical debt to credit bureaus, stronger protections while coverage appeals are pending.
- Health care entities, providers, and medical creditors — limits on collection tools, sale of debt, and reporting practices; new notice and timing obligations.
- Medical debt collectors and debt buyers — ban on buying and on collecting via certain extraordinary means; restrictions if appeals are pending.
- Consumer reporting agencies — will no longer receive medical‑debt information under the bill.
- Courts — may see shifts in medical‑debt litigation and different interest calculations for judgments (including a lower rate for judgments after Jan 1, 2026).
Procedural and timeline notes
- Introduced in the Massachusetts Senate (Docket No. 1878 / Senate No. 214); presented by Senator John J. Cronin on January 16–23, 2025.
- Referred to the Committee on Consumer Protection and Professional Licensure; hearings noted and scheduled (e.g., hearings held 2025‑05‑21; hearing scheduled 2025‑09‑08).
- The bill text sets a specific effective‑date trigger for reduced post‑judgment interest (judgments entered or renewed on or after January 1, 2026).
- Some provided legislative-action metadata (Transportation referrals, U.S. Senate cosponsors, and companion federal bill numbers) conflict with the Massachusetts state bill text and appear to be erroneous or from other measures.
Limitations
- The supplied text is truncated in places (notably the end of Section 5). This summary covers all clear provisions in the provided text; readers should consult the full filed bill for complete statutory language and any subsequent amendments.
Compiled from official sources — confirm details with the bill’s official record.
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