Tennessee House Bill HB2478

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 2/1/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 14, relative to judgment interest.

Impact

The implementation of HB2478 is expected to have notable implications for state law concerning how interest on medical judgments is calculated. By placing a cap on the interest rate for judgments arising from medical debt, the bill seeks to protect individuals from excessively high interest rates that can lead to overwhelming financial distress. This change could lead to a reduction in the total amount owed by individuals based on judgments associated with healthcare costs, potentially easing their financial recovery after incurring such debts.

Summary

House Bill 2478 aims to amend the Tennessee Code Annotated, specifically focusing on judgment interest relative to medical debt. The bill stipulates that where a judgment is based on medical debt, the applicable interest rate must not exceed a maximum effective rate of three percent (3%) per annum. This amendment is significant as it addresses concerns regarding the financial burdens that individuals face when dealing with healthcare-related debts and the associated interest that can exacerbate these financial challenges.

Conclusion

Overall, HB2478 represents a significant legislative effort to amend the framework governing interest rates on medical debt judgments in Tennessee. As the bill moves through the legislative process, it will be important to monitor discussions around its potential impacts on both consumers and the healthcare sector.

Contention

While the bill is aimed at consumer protection and reducing the impact of medical debt, there may be contention surrounding its implications for creditors and the healthcare industry. Opponents might argue that capping interest rates could lead to financial losses for providers or other entities involved in medical billing. There could also be discussions around the fiscal impact on judicial processes relating to how judgments are rendered and enforced under the new stipulations.