Assembly BillIntroducedGovernment
AB 2123: Medical Debt Relief Act of 2026.
What AB 2123 does, verified May 16, 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.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: In committee: Held under submission. (2026-05-14)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions12 total · showing 5
| May. 14, 2026 | In committee: Held under submission. |
| May. 06, 2026 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr. 21, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 1.) (April 20). Re-referred to Com. on APPR. |
| Apr. 13, 2026 | Re-referred to Com. on B. & F. |
| Apr. 09, 2026 | Read second time and amended. |
Latest bill textAmended version, April 9, 2026 · 1,068 words
| Amended IN Assembly April 09, 2026 |
| Amended IN Assembly March 16, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2123
| Introduced by Assembly Member Aguiar-Curry (Coauthor: Assembly Member Caloza) |
February 18, 2026 |
An act to add Section 15464 to the Government Code, and to amend Section Sections 127425 and 128740 of the Health and Safety Code, relating to medical debt, and making an appropriation therefor. debt.
LEGISLATIVE COUNSEL'S DIGEST
AB 2123, as amended, Aguiar-Curry. Medical Debt Relief Act of 2026.
Existing law, the California Health Facilities Financing Authority Act, establishes the California Health Facilities Financing Authority, which has authority to, among other things, make secured or unsecured loans to, or purchase secured or unsecured loans of, any participating health institution in accordance with an agreement between the authority and the participating health institution to refinance indebtedness incurred by that participating health institution, as specified, in connection with projects undertaken, for health facilities acquired, or for working capital. Existing law also authorizes the authority to award grants to eligible clinics and health facilities, as specified. Existing law establishes the California Health Facilities Financing Authority Fund, a continuously appropriated fund, to carry out the purposes of the act.
This bill, the Medical Debt Relief Act of 2026, would establish the medical debt relief program, which would be administered by the authority. The The bill would require the authority to enter into an interagency agreement with the Department of Health Care Access and Information to implement the program. The bill would require the authority and department to convene a stakeholder advisory group, as specified, no later than July 1, 2027, to advise on the development, implementation, and administration of the program. The bill would require the stakeholder advisory group, on or before January 1, 2028, to develop recommendations for the authority and department, including, among others, criteria for the ranking and priority of eligible recipients to receive discharge of their medical debt.
This bill would authorize the authority authority, in consultation with the department, to, among other things, contract with a medical debt relief coordinator, as defined, for purposes of acquiring medical debt of eligible recipients either directly from a providing health institution or from a debt buyer, as specified. The bill would require the authority to, among other things, maintain books and records of all the medical debt acquired and canceled. The bill would authorize the authority to adopt, amend, or repeal regulations to establish criteria for the operation and administration of the program, and would require the authority to take into account specified factors in developing its ranking and priority criteria. The bill would require the authority to maintain a public internet website for information about the program.
This bill would create the California Medical Debt Relief Program Account within the California Health Facilities Financing Authority Fund and would appropriate $2,500,000 from the General Fund to the California Medical Debt Relief Program Account for the purposes of the Medical Debt Relief Act of 2026. make all moneys in the account available, upon appropriation by the Legislature, to the authority for carrying out the purposes of the Medical Debt Relief Act of 2026. The bill would require the authority authority, in consultation with the department, to provide a report to the Legislature and Governor by January 1 of each year, starting January 1, 2028.
Existing law requires a hospital to report specified financial and utilization data to the Department of Health Care Access and Information, including, among other things, total operating expenses, and deductions from revenue, such as bad debts and charity care.
This bill would require a hospital to report to the department outstanding medical debt owed to the hospital, including debt amount, bill adjustments, source of coverage, whether charity care or discount was provided, demographic data, ZIP Code, and whether the debt led to litigation or wage garnishment.
The people of the State of California do enact as follows:
SECTION 1.
Section 15464 is added to the Government Code, immediately following Section 15463, to read:15464.
(a) This section shall be known, and may be cited, as the Medical Debt Relief Act of 2026.(b) The Legislature finds and declares all of the following:
(1) The rising costs of health care have had a severe economic impact on Californians.
(2) Numerous Californians have found themselves unable to pay for the costs of health care.
(3) The burden of unaffordable medical debt on these Californians has impacted their ability to participate equally in California’s economy.
(4) Relieving Californians of burdensome medical debt will enhance their ability to participate in California’s economy and lead to more economically beneficial and prosperous lives.
(5) It is necessary and appropriate to create a mechanism for needy Californians to escape the burden of medical debt they have no hope of repaying.
(c) As used in this section, the following definitions apply, unless the context clearly indicates or requires another or different meaning or intent:
(1) “Authority” means the California Health Facilities Financing Authority.
(2) “Department” means the Department of Health Care Access and Information.
(2)
(3)
“Eligible health care costs” means health care costs for medical care incurred by an eligible recipient at a health facility by a providing health institution.(3)
(4)
“Eligible recipient” means a patient who meets all of the following qualifications:(A) The person is a resident of California.
(B) The person has incurred medical debt following receipt of care from a providing health institution.
(C) The person is unable to repay the debt.
(D) The person’s federal adjusted gross income is 400 percent or less than the federal poverty line, or their debt is more than 5 percent of their adjusted gross income as measured by the prior tax return or the estimated return in the current year.
(4)
(5)
“Medical debt” means an eligible recipient’s obligation to pay money arising from the receipt of eligible health care costs.(5)
(6)
“Medical debt relief coordinator” means a person, company, partnership, or other entity under contract with the authority to facilitate the discharge of medical debt of an eligible recipient.(6)
(7)
“Medical debt relief program” or “program” means the program administered by the authority to cause discharge of an eligible recipient’s medical debt.(7)
(8)
“Providing health institution”Text of AB 2123 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions