Relating to: medical debt abolition and making an appropriation. (FE)

This bill establishes a state program to eliminate medical debt for eligible residents by purchasing and forgiving outstanding healthcare bills. It allocates $10 million annually for 2025-26 and 2026-27 to fund the program, which targets individuals earning up to 400 percent of the federal poverty line or those with medical debt equal to at least 5 percent of their household income. The state Department of Health Services or a contracted nonprofit would identify eligible residents, negotiate with healthcare providers and debt collectors to buy their debts, and then cancel the obligations while minimizing tax consequences for recipients. The bill requires annual reporting on the amount of debt abolished, the number of residents helped, and demographic data about participants and healthcare providers involved.