wa-law.org > bill > 2025-26 > SB 5993 > Engrossed Substitute

SB 5993 - Medical debt interest

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Section 1

  1. Except as provided in subsection (2) of this section, every loan or forbearance of money, goods, or thing in action shall bear interest at the rate of twelve percent per annum where no different rate is agreed to in writing between the parties: PROVIDED, That with regard to any transaction heretofore or hereafter entered into subject to this section, if an agreement in writing between the parties evidencing such transaction provides for the payment of money at the end of an agreed period of time or in installments over an agreed period of time, then such agreement shall constitute a writing for purposes of this section and satisfy the requirements thereof. The discounting of commercial paper, where the borrower makes himself or herself liable as maker, guarantor, or indorser, shall be considered as a loan for the purposes of this chapter.

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    1. For any medical debt accrued after December 31, 2026, interest charged or collected in excess of a simple interest rate of one percent per year on new medical debt, as defined in RCW 19.16.100, whether before or after entry of judgment.

    2. Notwithstanding subsection (a) of this section, interest may not be charged or collected on medical debt during any period in which:

      1. The hospital has not completed any required charity care screening and initial determination conducted in compliance with chapter 70.170 RCW;

      2. The medical debt is later determined to be invalid or not lawfully owed; or

      3. The medical debt is later determined by a court of competent jurisdiction or by operation of law to be not legally enforceable.

    3. If a medical debt is later reduced or eliminated under chapter 70.170 RCW, or is later determined to be invalid, not lawfully owed, or not legally enforceable, any interest charged or collected on or after the effective date of this section on the portion of the medical debt reduced or eliminated is void and must be refunded.

  3. A lease shall not be considered a loan or forbearance for the purposes of this chapter if:

    1. It constitutes a "consumer lease" as defined in RCW 63.10.020;

    2. It constitutes a lease-purchase agreement under chapter 63.19 RCW; or

    3. It would constitute such "consumer lease" but for the fact that:

      1. The lessee was not a natural person;

      2. The lease was not primarily for personal, family, or household purposes; or

      3. The total contractual obligation exceeded twenty-five thousand dollars.

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