The governor of Rhode Island has signed a medical debt credit reporting bill into law, introducing some of the most stringent protections for consumers with medical debt in the country.
Key provisions:
- Credit reporting ban: S0169 amends the state’s Deceptive Trade Practices Act to prohibit credit bureaus from including medical debt in consumer credit reports. It also bars furnishers from supplying such data. This provision goes into effect on January 1, 2026.
- Home and wage protections: The same bill also prevents creditors from seeking executions or attachments against a consumer’s primary residence and bars wage garnishment to collect medical debt judgments. These protections will take effect on January 1, 2026.
- Interest rate cap: S0172, which took effect immediately upon passage, sets a floating cap on interest for medical debts incurred after June 26, 2025. The rate is tied to the weekly average one-year constant maturity Treasury yield, with a floor of 1.5% and a ceiling of 4% annually.
Definition of medical debt: Both bills define “medical debt” as any amount a consumer owes to a healthcare facility or professional for the receipt of healthcare services, products, or devices. Medicaid reimbursement and child support obligations are excluded from this definition.
Effective dates:
- S0169: January 1, 2026
- S0172: Effective immediately; applies to medical debt incurred on or after June 26, 2025
Zoom out: These new laws position Rhode Island alongside other states that have enacted restrictions on how medical debt can be reported or collected, signaling a continued shift in legislative focus on medical debt reform.
