AN ACT relating to interest on medical debt.

Create a new section of KRS Chapter 360 to define "medical debt"; establish a maximum interest rate of 3% on medical debt; amend KRS 360.020 to expand the civil penalty for excessive interest on medical debt; amend KRS 360.040 to establish a maximum interest rate of 3% on judgments rendered in an action to collect medical debt; make technical amendments; amend KRS 216B.250 to conform.

Introduced: January 7, 2026

Last action: January 14, 2026

To Banking & Insurance (H)

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This bill would set a cap of 3% on the interest rate that can be charged on medical debt in Kentucky, including on court judgments related to collecting that debt. It also establishes penalties for lenders or collectors who charge more than that limit. This matters to Kentuckians who carry unpaid medical bills, as it would limit how much extra they owe over time due to interest. Who it may affect: Kentuckians with medical debt, as well as hospitals, medical providers, and debt collectors who handle medical billing.

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