Changes to Existing Law
HB1210 — Prohibit a hospital from reporting medical debt for collection in certain situations.
1 section modified+276-0
View:
§ 54-1
New Section+276
NEW SECTION added to Chapter 54-1
A hospital, as defined in § 34-12-1.1, is prohibited from reporting medical debt to a medical debt collector for the purpose of collecting the medical debt: (1) If the individual informs the hospital of an appeal pertaining to a denial of coverage by the individual's insurance provider, provided the prohibition terminates when the individual receives a final determination from the insurance provider; (2) Before the hospital has made reasonable efforts to determine whether the individual is eligible for assistance under the hospital's financial assistance program and, if eligible, before a decision is made by the hospital on the individual's application for financial assistance; (3) Before the hospital has provided the individual with an itemized statement of health care services or treatments provided to an individual; (4) For thirty days after notifying the individual in writing, by certified mail, or by other traceable delivery method, that a collection action will commence, absent additional action by the individual; (5) While the individual negotiates, in good faith, with the hospital on the final amount of a bill for services or treatments provided to an individual; or (6) While an individual is in compliance with all terms of a payment plan entered into with the hospital. An individual who claims to be adversely affected by this section is permitted to bring a civil action against the hospital for the recovery of actual damages suffered and attorney's fees. 25 For purposes of this section, "medical debt" means a debt arising from health care services or treatments provided to an individual. For purposes of this section, "medical debt collector" means a person who collects or attempts to collect a medical debt. 4