AN ACT relating to interest on medical debt.

Create a new section of KRS Chapter 360 to establish a maximum interest rate of three percent 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 three percent on judgments rendered in an action to collect medical debt; make technical amendments; amend KRS 216B.250 to conform.

Introduced: February 4, 2025

Last action: February 7, 2025

To Banking & Insurance (H)

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This bill would cap the interest rate on medical debt at three percent, limiting how much extra money can be added to what Kentuckians already owe for medical care. It also applies that same three percent cap to court judgments related to medical debt collection and sets civil penalties for lenders or collectors who charge more than the allowed rate. Who it may affect: Kentuckians carrying medical debt, as well as healthcare providers and debt collectors involved in medical billing and collections.

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