AB 2123: Medical Debt Relief Act of 2026.

The bill establishes a medical debt relief program, which would be administered by the California Health Facilities Financing Authority. The program would acquire medical debt from eligible recipients, either directly from a providing health institution or from a debt buyer. The authority would contract with a medical debt relief coordinator to manage the program and maintain records of all acquired and canceled debt. The program would have its own account within the authority's fund, and the state would provide $2,500,000 from the general fund to support the program. The authority would be required to establish criteria for the program's operation and administration, and to develop ranking and priority criteria that take into account various factors. The authority would also be required to provide a report to the legislature and governor by January 1 of each year, starting in 2028.