On May 2, the governor of the Commonwealth of Virginia approved HB 1725, which establishes the Medical Debt Protection Act to regulate billing and collection practices for medical debts. Effective July 1, 2026, the Act outlines restrictions on charging interest or late fees on medical debts until 90 days after the final invoice due date, with a cap of three percent annually.

Additionally, the Act specifies that large health care facilities and medical debt collectors must adhere to billing and collection rules, including providing patients with a notice before initiating certain extraordinary collection actions. This notice must include information on financial assistance, a list of collection actions, and a deadline for each action. Furthermore, the Act mandates refunds for any excess payments made by patients after applying for financial assistance. Violations of these provisions are deemed prohibited practices under the Virginia Consumer Protection Act.