An Act providing for limitation on medical debt interest, for a penalty and for right to equitable relief.

PRINTER'S NO. 1496
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1302
Session of
2025
INTRODUCED BY KHAN, McNEILL, CURRY, PIELLI, BOROWSKI, DAVIDSON,
GREEN, PROKOPIAK, GIRAL, WAXMAN, K.HARRIS, PROBST, HILL-
EVANS, KINKEAD, HANBIDGE, BURGOS, HOHENSTEIN, SANCHEZ,
DONAHUE, MERSKI, PARKER, NEILSON, CEPEDA-FREYTIZ AND RIVERA,
APRIL 28, 2025
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
UTILITIES, APRIL 28, 2025
AN ACT
Providing for limitation on medical debt interest, for a penalty
and for right to equitable relief.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Medical Debt
Interest Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Health care provider." Any of the following:
(1) A health care provider, as defined in section 1201
of the act of May 17, 1921 (P.L.682, No.284), known as The
Insurance Company Law of 1921.
(2) An emergency medical services agency, as defined
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under 35 Pa.C.S. § 8103 (relating to definitions).
"Medical debt." An obligation to pay money arising from the
receipt of health care services.
"Medical debt collector." One of the following:
(1) A person engaged in the business of collecting or
attempting to collect, directly or indirectly, medical debts
originally owed or due or asserted to be owed or due to
another person.
(2) A person who purchases a medical debt for collection
purposes, whether the person collects the debt itself or
hires a third party for collection or an attorney for
litigation to collect the debt.
Section 3. Limitation on medical debt interest.
No health care provider or medical debt collector in this
Commonwealth may charge an interest rate exceeding 6% on medical
debt.
Section 4. Penalties.
(a) Unfair or deceptive act or practice.--A violation of
section 3 constitutes an unfair or deceptive act or practice
under the act of December 17, 1968 (P.L.1224, No.387), known as
the Unfair Trade Practices and Consumer Protection Law.
(b) Injunction.--An individual may bring an action in court
for injunctive or other appropriate equitable relief to enforce
the provisions of this act.
Section 5. Effective date.
This act shall take effect in 60 days.
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