S27 is a bill in the Vermont Legislature (2025-2026 Session): An act relating to medical debt relief and excluding medical debt from credit reports.

What is the status of S27?

Signed into law as of April 18, 2025. Latest action: Senate Message: Signed by Governor [May 15, 2025] (May 16, 2025).

Virginia Lyons (D, Chittenden-Southeast District), with 11 co-sponsors.

Where is the official record for S27?

On the Vermont Legislature website: https://legislature.vermont.gov/bill/status/2026/S.27

Vermont legislation · 2025-2026 Session

Vermont S27: An act relating to medical debt relief and excluding medical debt from credit reports

Q: What does S27 do?

In its own words: An act relating to medical debt relief and excluding medical debt from credit reports. (S.27) It is hereby enacted by the General Assembly of the State of MEDICAL DEBT RELIEF; APPROPRIATION (a) The sum of $1,000,000.00 is appropriated to the State Treasurer from the General Fund in fiscal year 2026 for the purpose of contracting with a nonprofit entity to acquire and repay certain medical debts incurred by Vermont residents as set forth in this section. (b) The State Treasurer shall ensure that the entity with which the Treasurer contracts under this section will: (1) purchase the medical debt.

Status: Signed into law, April 18, 2025

What the bill says

An act relating to medical debt relief and excluding medical debt from credit reports. (S.27) It is hereby enacted by the General Assembly of the State of MEDICAL DEBT RELIEF; APPROPRIATION (a) The sum of $1,000,000.00 is appropriated to the State Treasurer from the General Fund in fiscal year 2026 for the purpose of contracting with a nonprofit entity to acquire and repay certain medical debts incurred by Vermont residents as set forth in this section. (b) The State Treasurer shall ensure that the entity with which the Treasurer contracts under this section will: (1) purchase the medical debt.

From the chaptered text, May 15, 2025:

An act relating to medical debt relief and excluding medical debt from credit reports. (S.27) It is hereby enacted by the General Assembly of the State of MEDICAL DEBT RELIEF; APPROPRIATION (a) The sum of $1,000,000.00 is appropriated to the State Treasurer from the General Fund in fiscal year 2026 for the purpose of contracting with a nonprofit entity to acquire and repay certain medical debts incurred by Vermont residents as set forth in this section. (b) The State Treasurer shall ensure that the entity with which the Treasurer contracts under this section will: (1) purchase the medical debt of eligible debtors from health care providers at fair market value; (2) abolish the debt with no cost or tax consequences for the debtor; (3) coordinate with the health care provider or collections agency to ensure that any adverse information resulting from the medical debt is removed from the debtor's consumer credit report following the contractor's purchase and abolition of the debt; and (4) notify each individual whose medical debt was abolished pursuant to this section: VT LEG #383896 v.1 No. 21 Page 2 of 6 (A) the amount of the individual's medical debt that was abolished and the name of the health care provider or providers from whom the entity purchased the individual's debt; (B) the estimated percentage of the …

Read the full official text

Vermont S27: An act relating to medical debt relief and excluding medical debt from credit reports

What the bill says

Sponsors

Latest actions

Common questions