An act relating to medical debt relief and excluding medical debt from credit reports

This bill establishes a state-funded program to provide medical debt relief for eligible Vermont residents. It appropriates $1 million to contract with a nonprofit entity to acquire and abolish qualifying medical debts, ensuring these debts are removed from individuals' credit reports. The legislation also prohibits credit reporting agencies, large healthcare facilities, and medical debt collectors from reporting medical debt information. Furthermore, large healthcare facilities are restricted from selling medical debt unless it is to a nonprofit for the express purpose of debt abolition. Finally, the bill clarifies the definition of "behavioral health" in state statutes to avoid stigmatization.