Shortly into the new year Virginia HB 1725 was introduced into the House. It is designed to prohibit large healthcare facilities or medical debt buyers from charging interest or late fees on medical debt for 90 days, or from using extraordinary collection actions to collect medical debt.
Virginia HB 1725, or the Medical Debt Protection Act, was introduced on January 4 of this year, and narrowly passed the house on a 49-46 vote. In the Senate it passed 27-13.
Virginia HB 1725 stops large healthcare facilities and medical debt buyers from taking action until 90 days following the due date applicable to the final invoice, after that interest or late fees cannot exceed three percent of the amount of the medical debt. The bill also prohibits extraordinary actions to collect medical debts, such as;
- Causing an individual’s arrest.
- Causing an individual to be subject to a writ of body attachment.
- Foreclosing on an individual’s real property.
- Placing a lien on an individual’s personal property.
- Garnishing the wages of any individual qualifying for financial assistance under the financial assistance policy applicable to the underlying medical debt.
Since Virginia HB 1725 passed both the House and the Senate, it is on Governor Glenn Younkin’s desk. If he would sign it, the bill would become effective on July 1, 2026.
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