The bill seeks to enhance consumer protection against medical debt by amending existing laws related to debt collection practices. It redefines "medical debt" to encompass all debts owed to medical service providers, including both unpaid and paid bills. A significant provision establishes that medical debt becomes void and unenforceable if reported to a consumer credit reporting agency in violation of the new regulations, categorizing such actions as unfair and deceptive under the consumer protection act. The bill also introduces stricter regulations for collection agencies, prohibiting deceptive practices such as threatening to report debts without justification and requiring transparency in communication with debtors.

Additionally, the bill includes measures to prevent debt collectors from imposing unauthorized fees, making unlawful threats, and excessively contacting debtors via cellular devices. It mandates that debt collectors provide itemized statements of medical debts upon request and halt collection efforts until these statements are delivered. Importantly, it specifies that hospitals and medical providers cannot report medical debt to credit agencies, rendering such debts void if they do so. Overall, the legislation aims to create a fairer and more transparent environment for consumers facing medical debt, ensuring they are well-informed of their rights and protections.

Statutes affected:
Original Bill: 19.16.100, 19.182.040, 70.41.400, 70.54.005
Substitute Bill: 19.16.100, 19.182.040, 70.41.400, 70.54.005
Engrossed Substitute: 19.16.100, 19.182.040, 70.41.400, 70.54.005
Bill as Passed Legislature: 19.16.100, 19.182.040, 70.41.400, 70.54.005
Session Law: 19.16.100, 19.182.040, 70.41.400, 70.54.005