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Medical Debt Legislation in WA, VT & Psilocybin Legalization Bill in IA

April 29, 2025 (1 min read)

WA Enacts Law Keeping Medical Debt Off Credit Reports

Washington Gov. Bob Ferguson (D) signed a bill (SB 5480) prohibiting collection agencies from reporting unpaid medical debt to credit agencies. The measure, which takes effect on July 27, is similar to a federal rule approved by the Biden administration but placed on hold by the Trump administration. (WASHINGTON STATE STANDARD)

VT Passes Medical Debt Bill

Vermont’s Legislature also passed a bill (SB 27) that would prohibit credit reporting agencies from considering medical debt when determining credit scores. The measure would also potentially eliminate $100 million of Vermonters’ medical debt. (VTDIGGER)

IA House Passes Bill to Legalize Psilocybin Treatment

Iowa’s House passed a bill (HF 978) that would legalize the use of psilocybin, the psychoactive compound in “magic mushrooms,” for psychiatric treatment. The measure would create a licensing board within the state’s Department of Health and Human Services similar to the existing one that oversees the state’s medical cannabis program. (IOWA CAPITAL DISPATCH)

—Compiled by SNCJ Managing Editor KOREY CLARK

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