AB 1168

This bill provides $10,000,000 in each of fiscal years 2025-26 and 2026-27 to the Department of Health Services to purchase eligible residents’ medical debt from commercial debt collectors and health care providers and abolish the medical debt. Under the bill, DHS must abolish medical debt in a manner that minimizes the effect on the eligible resident’s tax liability and may not seek payment from an eligible resident for their medical debt. The bill also excludes from the calculation of state income tax any amount of a taxpayer’s indebtedness discharged under the bill.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.