H.B. No. 2478 amends Section 20.05 of the Business & Commerce Code to enhance consumer protections regarding the reporting of medically necessary debt on consumer reports. The bill prohibits consumer reporting agencies from including information about medically necessary debt, regardless of when the debt was incurred, in consumer reports. This addition is significant as it aims to prevent the negative impact of such debts on consumers' credit reports, particularly for those who were covered by health benefit plans at the time the debt was incurred.

Additionally, the bill defines "medically necessary debt" as any debt arising from health care services that are necessary for diagnosing, treating, or preventing illnesses, injuries, or conditions. The legislation specifies that this definition includes services that meet accepted medical standards and preventative care measures. The changes will take effect on September 1, 2025, and will only apply to consumer reports furnished on or after that date, ensuring that reports generated before this date will still adhere to the previous regulations.

Statutes affected:
Introduced: Commerce Code 20.05 (Commerce Code 20)