An act relating to protections against medical debt

S 83 protects Vermont residents from medical debt harming their credit and finances by banning credit bureaus from reporting medical debt on credit reports. It limits interest on medical debt to 1.5%-4% annually (based on Treasury yields) and prohibits wage garnishment or property seizure to collect such debt. The bill applies to hospitals, clinics, and debt collectors, and also stops them from selling or reporting medical debt to credit agencies. It takes effect July 1, 2025, with interest limits applying only to new debt incurred after that date. Patients receiving financial assistance under state law are exempt from all interest and late fees.