HB 5255 Michigan House · 2025-2026 Regular Session

Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: HB 5254'25

HB 5255, the "Medical Debt Protection Act," limits how medical debt can be collected in Michigan, directly affecting patients with medical debt and large healthcare providers (with $20 million+ annual revenue) or medical debt buyers. It prohibits charging interest or late fees for 90 days after a bill is due and caps annual interest at 3% on medical debt. The bill bans aggressive collection tactics like wage garnishment for patients qualifying for financial assistance under a healthcare facility's policy, and requires medical debt buyers to follow strict rules, including not using prohibited collection actions and returning debt if a patient qualifies for financial aid.

Bill status passed 3 of 5 stages cleared

Introduction

Nov 2025

Committee Review

Jun 2026

House Passage

Jun 2026

Senate Passage

Governor

Introduced Nov 12, 2025 Last action Jun 25, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute (H-4) → As Passed by the House · 7 edits · Jun 23, 2026

MODERATE

The bill was renumbered from a substitute version to the final House version, incorporating significant policy updates to protect consumers from aggressive medical debt collection. Key changes include new definitions for 'urgent services' and 'patient,' stricter limits on interest rates, and a ban on selling medical debt without a pre-negotiated agreement that restricts the buyer's collection methods.

Scope change

The scope of protected entities was expanded by adding 'medical debt buyers' to the list of entities restricted from charging excessive interest and taking extraordinary collection actions, and by explicitly including 'urgent services' under the definition of health care services.

DEFINITION

Added new definitions for 'patient' (including parents/guardians legally liable) and 'urgent services' (services where delay jeopardizes life or health).

REQUIREMENT

Added a requirement that medical creditors cannot sell medical debt to buyers unless a prior written agreement exists that limits the buyer's ability to charge interest and take collection actions.

Added a prohibition on medical debt buyers charging interest higher than 3% per annum.

Modified the list of prohibited 'extraordinary collection actions' to explicitly include causing an individual's arrest and garnishing wages of those eligible for financial assistance.

Added a requirement that medical debt buyers must refund any overpayments made by patients within 60 days of determining the excess amount.

Added a requirement that medical debt collectors must provide a specific notice to patients at least 30 days before taking any extraordinary collection action.

TIMELINE

Modified the timeline for charging interest and late fees, requiring a 90-day waiting period after the invoice due date before these charges can begin.

Floor votes · House Jun 23, 2026

How they voted

93–12

Passed

Total votes 105

Jun 23, 2026

D Democratic46

46 Yea

100% Yea

R Republican59

47 Yea 12 Nay

79% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 25, 2026

Committee

REFERRED TO COMMITTEE OF THE WHOLE

upper

Jun 23, 2026

Lower · Passed

passed; given immediate effect Roll Call #242 Yeas 95 Nays 11 Excused 0 Not Voting 4

lower

Jun 23, 2026

Lower · Passed

substitute (H-4) adopted and amended

lower

Jun 17, 2026

Committee

referred to second reading

lower

Jun 17, 2026

Lower · Passed

reported with recommendation without amendment

lower

Nov 12, 2025

Committee

referred to Committee on Health Policy

lower

Nov 12, 2025

Introduced

introduced by Representative Rep. Laurie Pohutsky

lower

1 primary · 15 co-sponsors