Connecticut Governor Ned Lamont recently signed a new bill into law that prohibits healthcare providers from reporting patients’ medical debt to credit rating agencies. The law goes into effect on July 1, 2024. In addition, any contracts signed by healthcare providers with credit rating agencies on or after July 1, 2024 must include explicit language that prohibits the reporting of medical debt as per the new law.

“Medical debt” is defined under the law as an obligation to pay any amount related to the receipt of healthcare goods or services, but excludes any debt charged to credit cards unless the credit card is issued under an open-end or closed-end credit plan offered specifically for the payment of healthcare goods or services.

Connecticut joins several other states that recently enacted similar laws to protect consumers from the struggles associated with medical debt. The law is intended to encourage patients to seek necessary care without the fear of sacrificing their financial well-being for their physical health.