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SB1222 • 2026

Medical Debt

Medical Debt

Healthcare Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rodriguez
Last action
2026-03-13
Official status
Senate - Died in Health Policy
Effective date
2026-07-01

Plain English Breakdown

The official source material does not provide details on the process of determining eligibility for financial assistance, which was removed from the summary.

Medical Debt Protection Act

This bill sets rules for medical debt collection and limits interest rates on medical debts.

What This Bill Does

  • Defines 'medical debt collector' as a third party hired to collect unpaid medical bills.
  • Defines 'medical debt creditor' as the entity owed money for medical services.
  • Prohibits medical debt collectors from engaging in certain activities like threatening arrest or garnishing wages.
  • Limits interest rates on medical debts to 2% per year unless the debtor is eligible for financial assistance, then no interest or late fees are allowed.

Who It Names or Affects

  • Medical debt collectors and creditors
  • Patients with medical debts

Terms To Know

Extraordinary Collection Action
Actions like selling a patient's debt to another party or filing a lawsuit to collect unpaid bills.
Medical Debt Creditor
The entity owed money for medical services, such as a hospital or doctor.

Limits and Unknowns

  • It is unclear if the bill will be signed into law by the governor since it died in Health Policy committee.

Bill History

  1. 2026-03-13 Senate

    • Died in Health Policy

  2. 2026-01-13 Senate

    • Introduced

  3. 2026-01-12 Senate

    • Referred to Health Policy; Banking and Insurance; Rules

  4. 2026-01-06 Senate

    • Filed

Official Summary Text

Medical Debt; Defining the terms “medical debt collector” and “medical debt creditor”; prohibiting medical debt creditors and medical debt collectors from engaging in specified activities to collect medical debt; specifying limitations on the amount of interest a debtor may be charged for medical debt; providing that certain debtors may not be charged any interest or late fees on their medical debt, etc.

Current Bill Text

Read the full stored bill text
Florida Senate
-
2026

SB 1222

By
Senator Rodriguez

40-01249-26 20261222__
1 A bill to be entitled
2 An act relating to medical debt; amending s. 395.3011,
3 F.S.; revising the definition of the term
4 “extraordinary collection action”; defining the terms
5 “medical debt collector” and “medical debt creditor”;
6 prohibiting medical debt creditors and medical debt
7 collectors from engaging in specified activities to
8 collect medical debt; deleting applicability;
9 specifying limitations on the amount of interest a
10 debtor may be charged for medical debt; providing that
11 certain debtors may not be charged any interest or
12 late fees on their medical debt; providing that such
13 interest rates apply to judgments on medical debt;
14 providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Section 395.3011, Florida Statutes, is amended
19 to read:
20 395.3011 Billing and collection activities.—
21 (1) As used in this section, the term
:

22
(a)
“Extraordinary collection action” means any of the
23 following actions taken by a licensed facility against an
24 individual in relation to obtaining payment of a bill for care:
25
1.
(a)
Selling the individual’s debt to another party
,

26
except if, before the sale, the medical creditor has entered

27
into a legally binding written agreement with the medical debt

28
collector which includes all of the following terms:

29
a.

Prohibits the medical debt collector from engaging in

30
any prohibited collection action as specified in subsection (2);

31
b.

Prohibits the medical debt collector from charging

32
interest on the debt in excess of that authorized under

33
subsection (4);

34
c.

Allows the debt to be returned or recalled by the

35
medical debt creditor upon a determination by the medical debt

36
creditor or medical debt collector that the debtor is eligible

37
for financial assistance; and

38
d
.

I
f the
debtor
is determined to be eligible for financial

39
assistance and the

debt is

not returned to or recalled by the

40
medical
debt
creditor,
requires the
medical debt
collector
to

41
adhere to procedures specified in the agreement
which
ensure

42
that

the
debtor
does not pay, and has no obligation to pay, the

43
medical debt
collector
and the medical
debt
creditor
, in total,

44
more than he or she is personally responsible

for paying in

45
compliance with
the law
.
46
2.

Filing a debt collection lawsuit
.

47 (b)
“Medical debt collector” means a third party, separate

48
from the medical debt creditor, that is hired to recoup
,
or
is

49
sold
,
unpaid medical bills.

50
(c) “
Medical debt creditor” means the party that is owed

51
money for medical services.

52
(2)

A
medical
debt
creditor or medical debt collector
may

53
not engage in any of the following activities
to collect debts

54
owed for health care services:

55
(a)

Causing or threatening an individual’s arrest
.

56
(b)

Causing or threatening an individual to be subject to a

57
writ of body attachment or similar
instrument of law.

58
(c)

Obtaining or threatening to obtain a lien on an

59
individual’s real property
.

60
(d)

Foreclosing or threatening to foreclose on an

61
individual’s real property
.

62
(e)

Garnishing or threatening to garnish wages or state

63
income tax refund
s.

64
(f)

Using s
tate or federal tax offsets to seize tax refunds

65
or tax credits
.

66
(g)

Attaching, seizing, or threatening to attach or seize a

67
consumer’s bank account
.

68
(h)

Furnishing or threatening to furnish information about

69
the medical debt to a consumer

reporting agency

Reporting

70
adverse information about the individual to consumer credit

71
reporting agencies or credit bureaus.

72
(c) Deferring, denying, or requiring a payment before

73
providing medically necessary care because of the individual’s

74
nonpayment of one or more bills for previously provided care

75
covered under the facility’s financial assistance policy.

76
(d) Actions that require a legal or judicial process,

77
including, but not limited to:

78
1. Placing a lien on the individual’s property;

79
2. Foreclosing on the individual’s real property;

80
3. Attaching or seizing the individual’s bank account or

81
any other personal property;

82
4. Commencing a civil action against the individual;

83
5. Causing the individual’s arrest; or

84
6. Garnishing the individual’s wages
.
85
(3)
(2)
A facility may not engage in an extraordinary
86 collection action against an individual to obtain payment for
87 services:
88 (a) Before the facility has made reasonable efforts to
89 determine whether the individual is eligible for assistance
90 under its financial assistance policy for the care provided and,
91 if eligible, before a decision is made by the facility on the
92 patient’s application for such financial assistance.
93 (b) Before the facility has provided the individual with an
94 itemized statement or bill.
95 (c) During an ongoing grievance process as described in s.
96 395.301(6) or an ongoing appeal of a claim adjudication.
97 (d) Before billing any applicable insurer and allowing the
98 insurer to adjudicate a claim.
99 (e) For 30 days after notifying the patient in writing, by
100 certified mail, or by other traceable delivery method, that a
101 collection action will commence absent additional action by the
102 patient.
This paragraph does not apply to a sale of debt

103
governed by a contract executed by the facility, which provides

104
that the debt may not incur interest or fees and that no other

105
extraordinary collection actions are taken by the purchaser of

106
the debt which could otherwise be taken by the licensed

107
facility, as described in subsection (1), and that the debt will

108
be returned to the facility if the debt buyer determines the

109
individual is eligible for assistance under the facility’s

110
financial assistance policy.

111 (f) While the individual:
112 1. Negotiates in good faith the final amount of a bill for
113 services rendered; or
114 2. Complies with all terms of a payment plan with the
115 facility.
116
(4)(a)

Unless a
debtor
is eligible for financial

117
assistance, and notwithstanding

any agreement to the contrary,

118
interest on medical debt
may
not exceed 2 percent per

annum.

119
Debtors
eligible for financial assistance
may
not be charged any

120
interest or

late fees.

121
(b)

The rate of interest provided in paragraph (a) also

122
appl
ies
to any judgments on medical

debt, notwithstanding any

123
agreement to the contrary.

124 Section 2. This act shall take effect July 1, 2026.