An act relating to medical debt relief and excluding medical debt from credit reports
Sponsored By: Virginia "Ginny" V Lyons (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Medical debt relief for Vermonters
Beginning July 1, 2025, Vermont funds a one-time medical debt relief program. The State Treasurer gets $1,000,000 in FY2026 to hire a nonprofit to buy and cancel debts. You qualify if you live in Vermont and your income is at or below 400% of the federal poverty level, or your medical debt is at least 5% of your household income. The account must still be unpaid after the provider’s routine collection efforts. Canceled debts have no cost or tax to you, and related negative credit entries are removed. You get a notice with the amount canceled, the provider names, and your estimated FPL percent. The notice also explains hospital financial help: 100% discounts at ≤250% FPL and at least 40% for 250%–400% FPL.
Medical debt off credit reports
Starting July 1, 2025, credit reporting agencies cannot list medical debt on your credit report. Large health care facilities and medical debt collectors cannot report medical debt to them. Large facilities cannot sell medical debt, except to a 501(c)(3) that will cancel it. A 501(c)(3) may get your credit report without permission only to check if you qualify for debt abolition; large facilities cannot use this exemption. “Medical debt” means debt from health care services and goods, not vet care, credit card or home‑equity line charges, or other secured debt.
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Sponsors & Cosponsors
Sponsor
Virginia "Ginny" V Lyons
Democratic • Senate
Cosponsors
Alison Clarkson
Democratic • Senate
Ann E Cummings
Democratic • Senate
Anne E Watson
Democrat/Progressive • Senate
Brian P Collamore
Republican • Senate
Joseph "Joe" D Major
Democratic • Senate
Kesha K Ram Hinsdale
Democratic • Senate
Sen. Larry Hart
Affiliation unavailable
Martine Larocque L Gulick
Democratic • Senate
Nader A Hashim
Democratic • Senate
Patrick "Pat" M Brennan
Republican • Senate
Philip E Baruth
Democrat/Progressive • Senate
Rebecca "Becca" E White
Democratic • Senate
Richard A Westman
Republican • Senate
Robert W Norris
Republican • Senate
Robert Plunkett
Democratic • Senate
Ruth E Hardy
Democratic • Senate
Scott L Beck
Republican • Senate
Seth Bongartz
Democratic • Senate
Tanya C Vyhovsky
Democrat/Progressive • Senate
Thomas I Chittenden
Democratic • Senate
Wendy K Harrison
Democratic • Senate
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Senate Message: Signed by Governor May 15, 2025
5/16/2025HouseSigned by Governor on May 15, 2025
5/16/2025SenateDelivered to Governor on May 9, 2025
5/9/2025SenateAs passed by Senate and House
5/6/2025SenateHouse message: House concurred in Senate proposal of amendment to House proposal of amendment
5/6/2025SenateSenate proposal of amendment to House proposal of amendment concurred in
5/2/2025HouseAction Calendar: Senate Proposal of Amendment to House Proposal of Amendment
5/2/2025HouseNotice Calendar: Senate Proposal of Amendment to House Proposal of Amendment
5/1/2025HouseSenate Message: House proposal of amendment concurred in with further proposal of amendment thereto
4/30/2025HouseHouse proposal of amendment concurred in with further proposal of amendment as moved by Senator(s) Lyons and Perchlik
4/29/2025SenateHouse proposal of amendment; text
4/29/2025SenateConsideration resumed
4/29/2025SenatePending question: Shall the Senate concur in the House proposal of amendment??
4/29/2025SenateProposal of amendment to be offered by Senator(s) Lyons and Perchlik
4/29/2025SenateUnfinished Business/House Proposal of Amendment
4/29/2025SenateConsideration postponed without objection
4/25/2025SenateHouse proposal of amendment; text
4/25/2025SenateNew Business/House Proposal of Amendment
4/25/2025SenateHouse proposal of amendment
4/24/2025SenateEntered on Notice Calendar
4/24/2025SenateHouse message: House passed bill in concurrence with proposal(s) of amendment
4/23/2025SenateRead third time and passed in concurrence with proposal of amendment
4/22/2025HouseAction Calendar: Third Reading
4/22/2025HouseThird Reading ordered
4/18/2025HouseReport of Committee on Health Care, as amended, agreed to
4/18/2025House
Bill Text
As Enacted (ACT 21)
5/28/2025
As Passed by Both Chambers
5/8/2025
As Passed by Both Chambers (Unofficial)
5/8/2025
House Proposal of Amendment
4/23/2025
House Proposal of Amendment (Unofficial)
4/23/2025
As Passed by the Senate
3/25/2025
As Passed by the Senate (Unofficial)
3/25/2025
As Introduced
1/27/2025
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