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6/27/2025
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New law will limit the interest rate on new medical debt
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STATE HOUSE — Legislation introduced by Rep. Mary Ann Shallcross Smith and Sen. John Burke to cap the interest rate on new medical debt has been signed into law.
The bill (2025-H 5235A, 2025-S 0172) will 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 will 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.”
For more information, contact:
Tristan Grau, Publicist
State House Room B20
Providence, RI 02903
401.222.4935
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