Medical Debt Cancellation Act

The Medical Debt Cancellation Act (S 4289) creates a federal grant program to help hospitals cancel eligible medical debt for patients. Hospitals can apply for competitive grants to eliminate debt that is 15 months old or less, owed by low-income patients for emergency or non-elective care, with priority given to safety net hospitals. The bill also requires healthcare providers to follow new billing rules (like informing patients about financial assistance before bills are due) and bans interest on overdue medical bills, while adding protections against debt collectors pursuing pre-enactment medical debt. It establishes a public resource list of financial assistance programs and mandates annual reports on the program’s progress.