A bill has passed the Washington Senate and is currently in the House that would drastically reduce the interest rate for medical debt. Washington SB 5993 would cap medical debt interest rates at 1%, down from the 9% currently allowed by law.
Washington SB 5993, which was introduced in early January, originally called for a 0% interest rate, but passed the Senate with a party line vote with a 1% interest rate and it is currently in the House. There is also an additional amendment on interest collections and when interest cannot be charged.
The full Senate approved an amendment on interest rate timing. This amendment to Washington SB 5993 specifies that the 1% interest rate cap does not apply retroactively, only for medical debt accrued after December 31, 2026.
Washington SB 5993 contains an additional amendment on interest collections. This amendment states that interest cannot be charged or collected while a hospital is still conducting a required charity care screening. It also states that interest is barred if the debt is later found to be invalid, not lawfully owed, or legally unenforceable.
As the Washington session has come to a close, the bill has been tabled until 2027.
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