Vermont 2025-2026 Regular Session

Vermont Senate Bill S0027 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	BILLASINTRODUCEDANDPASSEDBYSENATE S.27
2		-	2025 Page1of6
3		-	S.27
4		-	IntroducedbySenatorsLyons,Baruth,Beck,Bongartz,Brennan,Chittenden,
5		-	Clarkson,Collamore,Cummings,Gulick,Hardy,Harrison,
6		-	Hart,Hashim,Major,Norris,Plunkett,RamHinsdale,
7		-	Vyhovsky,Watson,WestmanandWhite
8		-	ReferredtoCommitteeonHealthandWelfare
9		-	Date:January29,2025
10		-	Subject:Health;consumerprotection;creditreporting;medicaldebt
11		-	Statementofpurposeofbillasintroduced:Thisbillproposestodirectthe
12		-	StateTreasurertocontractwithanentitytoacquireandabolishcertain
13		-	medicaldebtsforVermonterswithincomesatorbelow400percentofthe
14		-	federalpovertylevelorwhoowemedicaldebtequaltofivepercentormoreof
15		-	theirhouseholdincome.Thebillwouldalsoprohibitcreditreportingagencies
16		-	fromreportingormaintaininginformationonVermonters’medicaldebtand
17		-	wouldprohibithealthcareprovidersfromreportingmedicaldebttocredit
18		-	reportingagencies.
19		-	Anactrelatingtomedicaldebtreliefandexcludingmedicaldebtfrom
20		-	creditreports
21		-	1
22		-	2
23		-	3
24		-	4
25		-	5
26		-	6
27		-	7
28		-	8
29		-	9
30		-	10
31		-	11
32		-	12
33		-	13
34		-	14
35		-	15
36		-	16
37		-	17
38		-	18 BILLASINTRODUCEDANDPASSEDBYSENATE S.27
39		-	2025 Page2of6
40		-	ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
41		-	Sec.1.STATETREASURER;MEDICALDEBTRELIEF;
42		-	APPROPRIATION
43		-	(a)Thesumof$1,000,000.00isappropriatedtotheStateTreasurerfrom
44		-	theGeneralFundinfiscalyear2026forthepurposeofcontractingwitha
45		-	nonprofitentitytoacquireandrepaycertainmedicaldebtsincurredby
46		-	Vermontresidentsassetforthinthissection.
47		-	(b)TheStateTreasurershallensurethattheentitywithwhichthe
48		-	Treasurercontractsunderthissectionwill:
49		-	(1)purchasethemedicaldebtofeligibledebtorsfromhealthcare
50		-	providersatfairmarketvalue;
51		-	(2)abolishthedebtwithnocostortaxconsequencesforthedebtor;and
52		-	(3)coordinatewiththehealthcareproviderorcollectionsagencyto
53		-	ensurethatanyadverseinformationresultingfromthemedicaldebtis
54		-	removedfromthedebtor’sconsumercreditreportfollowingthecontractor’s
55		-	purchaseandabolitionofthedebt.
56		-	(c)Inordertobeeligibleforrepaymentofmedicaldebtunderthissection,
57		-	thefollowingconditionsmustbemet:
58		-	(1)thedebtorshallbeaVermontresidentwhoeitherhasahousehold
59		-	incomethatisatorbelow400percentofthefederalpovertylevelforthe
60		-	1
61		-	2
62		-	3
63		-	4
64		-	5
65		-	6
66		-	7
67		-	8
68		-	9
69		-	10
70		-	11
71		-	12
72		-	13
73		-	14
74		-	15
75		-	16
76		-	17
77		-	18
78		-	19
79		-	20 BILLASINTRODUCEDANDPASSEDBYSENATE S.27
80		-	2025 Page3of6
81		-	applicablehouseholdsizeorwhoowesmedicaldebtinanamountthatisfive
82		-	percentormoreofthedebtor’shouseholdincome;and
83		-	(2)thedebtor’spatientaccountstillmaintainsanoutstandingbalance
84		-	evenafterthehealthcareproviderhascompleteditsroutineeffortstocollect
85		-	theamountsdue.
86		-	Sec.2.2022ActsandResolvesNo.83,Sec.53(b)(5)(B),asamendedby2022
87		-	ActsandResolvesNo.185,Sec.C.102and2023ActsandResolvesNo.78,
88		-	Sec.E.1000,isfurtheramendedtoread:
89		-	(B)$20,000,000$19,000,000shallbeappropriatedtotheState
90		-	Treasurer’sOfficeandusedforredeemingStateofVermontgeneralobligation
91		-	bondspriortomaturity.
92		-	Sec.3.9V.S.A.§ 2466disaddedtoread:
93		-	§ 2466d.REPORTINGOFMEDICALDEBTINFORMATION
94		-	PROHIBITED
95		-	Acreditreportingagencyshallnotreportormaintaininthefileona
96		-	consumerinformationrelatingtoamedicaldebt,asdefinedin18V.S.A.
97		-	§ 9481.
98		-	Sec.3.9V.S.A.§ 2466disaddedtoread:
99		-	§ 2466d.REPORTINGOFMEDICALDEBTINFORMATION
100		-	PROHIBITED
101		-	(a)Acreditreportingagencyshallnotreportormaintaininthefileona
102		-	consumerinformationrelatingtoamedicaldebt.
103		-	(b)Asusedinthissection:
104		-	1
105		-	2
106		-	3
107		-	4
108		-	5
109		-	6
110		-	7
111		-	8
112		-	9
113		-	10
114		-	11
115		-	12
116		-	13
117		-	14
118		-	15
119		-	16
120		-	17 BILLASINTRODUCEDANDPASSEDBYSENATE S.27
121		-	2025 Page4of6
122		-	(1)“Healthcareservices”meansservicesforthediagnosis,prevention,
123		-	treatment,cure,orreliefofaphysical,dental,behavioral,ormentalhealth
124		-	conditionorsubstanceusedisorder,includingcounseling,procedures,
125		-	products,devices,andmedications.
126		-	(2)“Medicaldebt”meansdebtarisingfromhealthcareservices,
127		-	includingdentalservices,orfromhealthcaregoods,includingproducts,
128		-	devices,durablemedicalequipment,andprescriptiondrugs.“Medicaldebt”
129		-	doesnotincludedebtarisingfromservicesprovidedbyaveterinarian;debt
130		-	chargedtoacreditcardunlessthecreditcardisissuedunderanopen-endor
131		-	closed-endcreditplanofferedsolelyforthepaymentofhealthcareservices;
132		-	debtchargedtoahomeequityorgeneral-purposelineofcredit;orsecured
133		-	debt.
134		-	Sec.4.9V.S.A.§ 2480bisamendedtoread:
135		-	§2480b.DISCLOSURESTOCONSUMERS
136		-	***
137		-	(c)Anytimeacreditreportingagencyisrequiredtomakeawritten
138		-	disclosuretoconsumerspursuantto15U.S.C.§1681g,itshalldisclose,inat
139		-	least12-pointtype,andinboldtypeasindicated,thefollowingnotice:
140		-	“NOTICETOVERMONTCONSUMERS
141		-	***
142		-	(2)UnderVermontlaw,noonemayaccessyourcreditreportwithout
143		-	yourpermissionexceptunderthefollowinglimitedcircumstances:
144		-	***
145		-	(F)wheretherequestforacreditreportisrelatedtoacredit
146		-	transactionenteredintopriortoJanuary1,1993;or
147		-	1
148		-	2
149		-	3
150		-	4
151		-	5
152		-	6
153		-	7
154		-	8
155		-	9
156		-	10
157		-	11
158		-	12 BILLASINTRODUCEDANDPASSEDBYSENATE S.27
159		-	2025 Page5of6
160		-	(G)wheretherequestforacreditreportisbytheVermont
161		-	DepartmentofTaxesandisusedforthepurposeofcollectingorinvestigating
162		-	delinquenttaxes;or
163		-	(H)wheretherequestforacreditreportisbyanorganizationthatis
164		-	exemptfromtaxationunderSection501(c)(3)oftheInternalRevenueCode
165		-	forthepurposeofdeterminingeligibilityfortheabolitionofmedicaldebt.
166		-	***
167		-	Sec.5.9V.S.A.§ 2480gisamendedtoread:
168		-	§2480g.EXEMPTIONS
169		-	***
170		-	(e)Theprovisionsofsection2480eofthistitleshallnotapplytoan
171		-	organizationthatisexemptfromtaxationunderSection501(c)(3)ofthe
172		-	InternalRevenueCodewhendeterminingeligibilityfortheabolitionof
173		-	medicaldebt.
174		-	Sec.6.18V.S.A.chapter221,subchapter10isamendedtoread:
175		-	Subchapter10.PatientFinancialAssistanceandMedicalDebt
176		-	***
177		-	§9485.PROHIBITIONONSALEORREPORTINGOFMEDICALDEBT
178		-	(a)(1)Nolargehealthcarefacilityshallsellitsmedicaldebtexceptas
179		-	providedinsubdivision(2)ofthissubsection.
180		-	1
181		-	2
182		-	3
183		-	4
184		-	5
185		-	6
186		-	7
187		-	8
188		-	9
189		-	10
190		-	11
191		-	12
192		-	13
193		-	14
194		-	15
195		-	16
196		-	17
197		-	18
198		-	19
199		-	20 BILLASINTRODUCEDANDPASSEDBYSENATE S.27
200		-	2025 Page6of6
201		-	(2)Alargehealthcarefacilitymaysellorotherwisetransferitsmedical
202		-	debttoanorganizationthatisexemptfromtaxationunderSection501(c)(3)of
203		-	theInternalRevenueCodeforthespecificpurposeofthetax-exempt
204		-	organizationabolishingthemedicaldebtofoneormorepatientsby
205		-	cancellationoftheindebtedness.
206		-	(b)Nolargehealthcarefacilityormedicaldebtcollectorshallreportor
207		-	otherwisefurnishanyportionofamedicaldebttoacreditreportingagency.
208		-	***
209		-	Sec.7.EFFECTIVEDATE
210		-	ThisactshalltakeeffectonJuly1,2025.
211		-	1
212		-	2
213		-	3
214		-	4
215		-	5
216		-	6
217		-	7
218		-	8
219		-	9
220		-	10
	1	+	BILL AS INTRODUCED S.27
	2	+	2025 Page 1 of 5
	3	+
	4	+
	5	+	VT LEG #379231 v.1
	6	+	S.27 1
	7	+	Introduced by Senators Lyons, Baruth, Beck, Bongartz, Brennan, Chittenden, 2
	8	+	Clarkson, Collamore, Cummings, Gulick, Hardy, Harrison, 3
	9	+	Hart, Hashim, Major, Norris, Plunkett, Ram Hinsdale, 4
	10	+	Vyhovsky, Watson, Westman and White 5
	11	+	Referred to Committee on 6
	12	+	Date: 7
	13	+	Subject: Health; consumer protection; credit reporting; medical debt 8
	14	+	Statement of purpose of bill as introduced: This bill proposes to direct the 9
	15	+	State Treasurer to contract with an entity to acquire and abolish certain medical 10
	16	+	debts for Vermonters with incomes at or below 400 percent of the federal 11
	17	+	poverty level or who owe medical debt equal to five percent or more of their 12
	18	+	household income. The bill would also prohibit credit reporting agencies from 13
	19	+	reporting or maintaining information on Vermonters’ medical debt and would 14
	20	+	prohibit health care providers from reporting medical debt to credit reporting 15
	21	+	agencies. 16
	22	+	An act relating to medical debt relief and excluding medical debt from 17
	23	+	credit reports 18 BILL AS INTRODUCED S.27
	24	+	2025 Page 2 of 5
	25	+
	26	+
	27	+	VT LEG #379231 v.1
	28	+	It is hereby enacted by the General Assembly of the State of Vermont: 1
	29	+	Sec. 1. STATE TREASURER; MEDICAL DEBT RELIEF; 2
	30	+	APPROPRIATION 3
	31	+	(a) The sum of $1,000,000.00 is appropriated to the State Treasurer from 4
	32	+	the General Fund in fiscal year 2026 for the purpose of contracting with a 5
	33	+	nonprofit entity to acquire and repay certain medical debts incurred by 6
	34	+	Vermont residents as set forth in this section. 7
	35	+	(b) The State Treasurer shall ensure that the entity with which the Treasurer 8
	36	+	contracts under this section will: 9
	37	+	(1) purchase the medical debt of eligible debtors from health care 10
	38	+	providers at fair market value; 11
	39	+	(2) abolish the debt with no cost or tax consequences for the debtor; and 12
	40	+	(3) coordinate with the health care provider or collections agency to 13
	41	+	ensure that any adverse information resulting from the medical debt is removed 14
	42	+	from the debtor’s consumer credit report following the contractor’s purchase 15
	43	+	and abolition of the debt. 16
	44	+	(c) In order to be eligible for repayment of medical debt under this section, 17
	45	+	the following conditions must be met: 18
	46	+	(1) the debtor shall be a Vermont resident who either has a household 19
	47	+	income that is at or below 400 percent of the federal poverty level for the 20 BILL AS INTRODUCED S.27
	48	+	2025 Page 3 of 5
	49	+
	50	+
	51	+	VT LEG #379231 v.1
	52	+	applicable household size or who owes medical debt in an amount that is five 1
	53	+	percent or more of the debtor’s household income; and 2
	54	+	(2) the debtor’s patient account still maintains an outstanding balance 3
	55	+	even after the health care provider has completed its routine efforts to collect 4
	56	+	the amounts due. 5
	57	+	Sec. 2. 2022 Acts and Resolves No. 83, Sec. 53(b)(5)(B), as amended by 2022 6
	58	+	Acts and Resolves No. 185, Sec. C.102 and 2023 Acts and Resolves No. 78, 7
	59	+	Sec. E.1000, is further amended to read: 8
	60	+	(B) $20,000,000 $19,000,000 shall be appropriated to the State 9
	61	+	Treasurer’s Office and used for redeeming State of Vermont general obligation 10
	62	+	bonds prior to maturity. 11
	63	+	Sec. 3. 9 V.S.A. § 2466d is added to read: 12
	64	+	§ 2466d. REPORTING OF MEDICAL DEBT INFORMATION 13
	65	+	PROHIBITED 14
	66	+	A credit reporting agency shall not report or maintain in the file on a 15
	67	+	consumer information relating to a medical debt, as defined in 18 V.S.A. 16
	68	+	§ 9481. 17
	69	+	Sec. 4. 9 V.S.A. § 2480b is amended to read: 18
	70	+	§ 2480b. DISCLOSURES TO CONSUMERS 19
	71	+	* * * 20 BILL AS INTRODUCED S.27
	72	+	2025 Page 4 of 5
	73	+
	74	+
	75	+	VT LEG #379231 v.1
	76	+	(c) Any time a credit reporting agency is required to make a written 1
	77	+	disclosure to consumers pursuant to 15 U.S.C. § 1681g, it shall disclose, in at 2
	78	+	least 12-point type, and in bold type as indicated, the following notice: 3
	79	+	“NOTICE TO VERMONT CONSUMERS 4
	80	+	* * * 5
	81	+	(2) Under Vermont law, no one may access your credit report without 6
	82	+	your permission except under the following limited circumstances: 7
	83	+	* * * 8
	84	+	(F) where the request for a credit report is related to a credit 9
	85	+	transaction entered into prior to January 1, 1993; or 10
	86	+	(G) where the request for a credit report is by the Vermont 11
	87	+	Department of Taxes and is used for the purpose of collecting or investigating 12
	88	+	delinquent taxes; or 13
	89	+	(H) where the request for a credit report is by an organization that is 14
	90	+	exempt from taxation under Section 501(c)(3) of the Internal Revenue Code 15
	91	+	for the purpose of determining eligibility for the abolition of medical debt. 16
	92	+	* * * 17
	93	+	Sec. 5. 9 V.S.A. § 2480g is amended to read: 18
	94	+	§ 2480g. EXEMPTIONS 19
	95	+	* * * 20 BILL AS INTRODUCED S.27
	96	+	2025 Page 5 of 5
	97	+
	98	+
	99	+	VT LEG #379231 v.1
	100	+	(e) The provisions of section 2480e of this title shall not apply to an 1
	101	+	organization that is exempt from taxation under Section 501(c)(3) of the 2
	102	+	Internal Revenue Code when determining eligibility for the abolition of 3
	103	+	medical debt. 4
	104	+	Sec. 6. 18 V.S.A. chapter 221, subchapter 10 is amended to read: 5
	105	+	Subchapter 10. Patient Financial Assistance and Medical Debt 6
	106	+	* * * 7
	107	+	§ 9485. PROHIBITION ON SALE OR REPORTING OF MEDICAL DEBT 8
	108	+	(a)(1) No large health care facility shall sell its medical debt except as 9
	109	+	provided in subdivision (2) of this subsection. 10
	110	+	(2) A large health care facility may sell or otherwise transfer its medical 11
	111	+	debt to an organization that is exempt from taxation under Section 501(c)(3) of 12
	112	+	the Internal Revenue Code for the specific purpose of the tax-exempt 13
	113	+	organization abolishing the medical debt of one or more patients by 14
	114	+	cancellation of the indebtedness. 15
	115	+	(b) No large health care facility or medical debt collector shall report or 16
	116	+	otherwise furnish any portion of a medical debt to a credit reporting agency. 17
	117	+	* * * 18
	118	+	Sec. 7. EFFECTIVE DATE 19
	119	+	This act shall take effect on July 1, 2025. 20