This bill seeks to enhance consumer protections related to medical debt in Minnesota by establishing new requirements for billing and payment processes, particularly concerning miscoded health treatments. It introduces definitions for key terms such as "group practice," "health care provider," and "medically necessary," and mandates that health care providers publicly disclose their medical debt collection policies. The legislation prohibits providers from denying medically necessary treatments due to outstanding medical debt and requires them to enroll patients in payment plans as a condition for providing such treatments. Additionally, it outlines the responsibilities of health care providers and health plan companies regarding miscoded services, ensuring that patients are not billed during the review process.

The bill also includes provisions that restrict certain debt collection practices, such as threatening legal action without proper authority and misleading communication with debtors. It prohibits consumer reporting agencies from including medical debt in consumer reports and establishes strict liability for collecting parties that violate these provisions, allowing debtors to recover actual damages, additional damages up to $1,000 per violation, and attorney fees. Furthermore, it stipulates that willful and malicious violations result in triple damages and includes a mechanism for adjusting the dollar amount limit based on changes in the Consumer Price Index. The bill amends existing statutes to clarify interest rates on debts owed to healthcare providers and updates terminology regarding spousal liability for debts.

Statutes affected:
1st Engrossment: 334.01, 519.05