Health Care - As introduced, enacts the "Freedom from Medical Debt Act," which requires the state treasurer to contract with a nonprofit entity to acquire and repay certain medical debts for Tennessee residents with incomes at or below 400 percent of the federal poverty level or who owe medical debt equal to 5 percent or more of their household income, and prohibits healthcare providers from reporting a patient's medical debt to a consumer reporting agency. - Amends TCA Title 4; Title 8; Title 9; Title 47, Chapter 18; Title 63; Title 68 and Title 71.

HB 1859, the "Freedom from Medical Debt Act," requires Tennessee’s state treasurer to contract with a nonprofit entity to repay medical debt for eligible residents. It directly affects Tennessee residents with household incomes at or below 400% of the federal poverty level or those owing medical debt equal to 5% or more of their annual household income. The bill prohibits healthcare providers from reporting medical debt to credit bureaus starting July 1, 2026, and mandates that nonprofits remove negative credit reporting after repaying debt. Eligible debt must remain unpaid for over 120 days after billing, and repayment contracts explicitly state the state is not liable for the debt.