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A1356Assembly2025-2026 SessionSame asS359

Stop Hospital Debt Lawsuits

Official title

“Prohibits state-operated hospitals from suing patients for medical debt”

Sponsor Amy PaulinAD-88+25 co-sponsorsAffects Health
Status
In Assembly Committee
Health
Impact
8/10
Significant
Passage
26%

Bill progress

Step 2 of 7

In committee · Health

What's happening

This bill prohibits New York state-operated hospitals from suing patients to collect medical debt.

Why it matters

  1. Reduces financial pressure on vulnerable patients. by preventing state-run hospitals from suing them over unpaid medical bills, which can lead to wage garnishment, liens, or ruined credit.

  2. Shifts hospital debt collection practices. state hospitals must now rely on non-litigation strategies (like payment plans or charity care) instead of taking patients to court for medical debts.

  3. Broad definition of "medical debt". means the protection extends not just to hospital care, but also to bills for services from affiliated healthcare professionals and ambulance services, offering wider relief.

  4. Could influence broader healthcare policy. by setting a precedent for how public institutions approach medical debt, which may pressure private hospitals or other states to reconsider aggressive collection tactics.

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Who cares

  • Patients with medical debt

    The bill would bar covered state-operated facilities from pursuing them in civil or supreme court over medical debt, including alleged obligations.

  • State university health care facilities

    Facilities authorized under article eight of the Education Law would lose the option to sue patients in civil or supreme court to collect medical debt.

  • Cancer institutes and hospitals covered by the bill

    Cancer institutes authorized under article ten-C of the Public Authorities Law and hospitals authorized under Public Health Law section 2600 would face the same litigation ban.

Headline styles

Stop Hospital Debt Lawsuits

Plain English, a few words. Used as the page title.

Sponsors

History

  1. Referred to health
  2. Referred to health

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

S359Senate

Stop Hospital Debt Lawsuits

In Senate Committee · Health · Sponsor Gustavo Rivera

Impact 7 · Significant35% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1356

2025-2026 Regular Sessions

IN ASSEMBLY

January 9, 2025

Introduced by M. of A. PAULIN, OTIS, SIMONE, HEVESI, GONZALEZ-ROJAS, BURDICK, SEAWRIGHT, EPSTEIN, WEPRIN, HUNTER, STIRPE, SHIMSKY, LEVEN- BERG, GLICK, REYES, DE LOS SANTOS, McDONOUGH, SIMON, FORREST, ROSEN- THAL, MAMDANI, RAGA, BICHOTTE HERMELYN -- read once and referred to the Committee on Health

AN ACT to amend the public health law, in relation to prohibiting stateoperated hospitals from suing patients for medical debt

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The public health law is amended by adding a new article 51 to read as follows:

ARTICLE 51

PROHIBITION ON STATE-OPERATED HOSPITALS SUING PATIENTS FOR

MEDICAL DEBT Section 5100. Prohibition on state-operated hospitals suing patients for

medical debt.

§ 5100. Prohibition on state-operated hospitals suing patients for medical debt. 1. No state university health care facility authorized under article eight of the education law, cancer institute authorized under article ten-C of the public authorities law, or hospital authorized under section twenty-six hundred of this chapter shall pursue litigation in civil or supreme court against a patient for the pursuit of a medical debt.

2. For the purposes of this section, the term "medical debt" shall mean an obligation or alleged obligation of a consumer to pay any amount related to the receipt of health care services, products, or devices provided to a person by a hospital licensed under article twenty-eight of this chapter, a health care professional authorized under title eight of the education law or an ambulance service certified under article thirty of this chapter.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00559-01-5

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.