Sec. 2. Grants to cancel medical debt owed by patients
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Section 2799B–10 of the Public Health Service Act, as added by section 3, is amended by adding at the end the following: The Secretary shall establish a grant program under which the Secretary, beginning not later than 1 year after the date of enactment of the Medical Debt Cancellation Act , awards grants on a competitive basis to hospitals in the United States in order to eliminate all eligible medical debt owed by residents of the United States to such hospitals. To be eligible to receive a grant under this subsection, a hospital shall— submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require; and agree to submit to the Secretary such reports regarding the use of grant funds as the Secretary may require.
In awarding grants under this subsection, the Secretary shall— prioritize awards to hospitals that— are safety net hospitals; and agree to cancel, at a minimum, all medical debt that is— 15 months old or less; owed by low-income and vulnerable patient populations; and attributable to emergency and non-elective care; and ensure that awards are distributed to hospitals across diverse geographical areas of the United States. Grants awarded to a hospital under this subsection shall be used to supplement, and not supplant, other sources of funding and investments made by the hospital for the purposes of providing financial assistance to patients.
Not later than 2 years after the date of enactment of the Medical Debt Cancellation Act , the Secretary shall expand the program under this subsection to allow providers and health care facilities other than hospitals, and individuals, to receive medical debt cancellation. Not later than 1 year after the date of enactment of the Medical Debt Cancellation Act , the Secretary shall instruct Federal health care programs to eliminate medical debt collections. In carrying out this subsection, the Secretary shall consult with relevant Federal agencies, departments, and health programs, patient advocates, community-based organizations with experience in medical debt cancellation, providers, and other key stakeholders.
Beginning 2 years after the date of enactment of the Medical Debt Cancellation Act , and annually thereafter until the date on which the program under this subsection sunsets pursuant to paragraph (10), the Secretary shall submit to relevant congressional committees a progress report on the implementation, administration, and impact of the program under this subsection. In this subsection— the term eligible medical debt — means the out-of-pocket unpaid amount owed by a resident of the United States for items or services furnished to such individual by a hospital, provided that— such medical debt is in compliance with applicable Federal laws and regulations, including— the medical billing requirements of subsection (a); the medical debt collection requirements of subsection (b); and the contracting limitation under subsection (c); such medical debt is with respect to items and services furnished to an individual on or before the date of enactment of the Medical Debt Cancellation Act ; and any dispute resolution process under section 2799B–7 is complete; and excludes— any amount paid or payable by any Federal health care program; and with respect to items and services furnished to an individual by the hospital, any amount that is in excess of the sum of the amount reimbursable by a Federal health care program or other payer and copayment amounts under such a program or other health insurance plan with respect to such items and services. the term Federal health care program has the meaning given such term in section 1128B(f) of the Social Security Act.
The authorities under this subsection shall sunset on the date the Secretary certifies all eligible medical debt in the United States has been canceled under this subsection. .