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6/20/2025
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General Assembly approves bill that would limit the interest rate on new medical debt
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STATE HOUSE — The General Assembly today approved legislation introduced by Rep. Mary Ann Shallcross Smith and Sen. John Burke that would cap the interest rate on new medical debt.
The bill (2025-H 5235A, 2025-S 0172) would cap the interest rate on new medical debt at the interest rate equal to the weekly average one-week constant maturity Treasury yield, but not less than 1.5 percent annum nor more than 4 percent annum, as published by the Board of Governors for the Federal Reserve System. The interest rate would also be extended to judgments on medical debt.
“Medical debt not only impacts patients, but their families and caregivers as well,” said Representative Shallcross Smith (D-Dist. 46, Lincoln, Pawtucket). “Patients with serious illnesses are the ones who are most likely to utilize multiple health care providers. And that doesn’t factor in the additional expenses, such as transportation, lodging and losing wages due to taking time off. High interest rates are too much of a burden for families that are already burdened to the breaking point.”
“This bill curtails the unconscionable practice of profiting from and compounding the suffering of vulnerable Rhode Islanders who are struggling under the weight of medical debt,” said Senator Burke (D-Dist. 9, West Warwick). “High interest rates for medical debt increase a burden that people already cannot bear, and further limit people’s abilities to ever escape from the debt cycle.”
The measure now moves to the governor’s office.
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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