This bill amends RCW 19.52.010. It retains the general rule that loans or forbearances bear interest at 12% per year unless a different written rate is agreed, but establishes a new, lower cap for medical debt: any medical debt accrued after December 31, 2026 may not be charged or collected interest in excess of a simple interest rate of 1% per year, whether the debt is before or after entry of judgment. This is a statutory change creating an interest-rate limit specific to new medical debt. The bill also makes procedural and remedial changes: interest may not be charged or collected on medical debt during any period in which the hospital has not completed required charity care screening and initial determination under chapter 70.170 RCW, or during any period the debt is later determined to be invalid, not lawfully owed, or not legally enforceable (including by a court). If medical debt is later reduced or eliminated under chapter 70.170 RCW, or later determined invalid or unenforceable, any interest charged or collected on or after the effective date of this section on the portion reduced or eliminated is void and must be refunded. The effective date for that refund requirement is not specified in the provided facts. The bill also clarifies that certain leases are not treated as loans or forbearances under this chapter: a "consumer lease" as defined in RCW 63.10.020, a lease-purchase agreement under chapter 63.19 RCW, or an agreement that would be a consumer lease but for the lessee not being a natural person, the lease not being primarily for personal/family/household purposes, or the total contractual obligation exceeding $25,000. Key terms like "medical debt" and "consumer lease" are referenced to other statutes (RCW 19.16.100 and RCW 63.10.020) but their texts were not included in the provided facts. The bill was read for the first time on January 23, 2026.

If enacted, medical bills incurred after December 31, 2026 will generally stop growing at typical high interest rates and instead will accrue no more than 1% simple interest per year, and people will not be charged interest while hospitals have not completed required charity care screening or if the debt is later found invalid or unenforceable. Patients with qualifying medical debt are therefore likely to face much lower carrying costs and may receive refunds for interest collected on portions of bills later reduced or eliminated. Hospitals will have a greater incentive and responsibility to complete charity care screening promptly, creating additional administrative work and timing risk before they or collectors can charge interest. Lenders, debt collectors, and health systems that rely on interest income will likely see reduced revenue and may incur costs to identify affected accounts and issue refunds. Important details needed for implementation — the statutory definitions and the bill’s effective date — are not included here, so the exact timing and scope of these changes remain unclear.