The bill seeks to enhance consumer protections against medical debt by amending existing laws and introducing new provisions. It expands the definition of "medical debt" to encompass not only obligations for health care services but also a variety of medical products and devices, such as wheelchairs and insulin pumps. A key provision states that medical debt becomes void and unenforceable if reported to a consumer credit reporting agency by a health care provider or collection agency. Additionally, any contract creating a medical debt must explicitly prohibit reporting to credit agencies, and failure to include this term will render the debt void.

The legislation also categorizes violations of these provisions as unfair or deceptive acts under the consumer protection act, reinforcing consumer rights. It mandates that debt collection agencies provide detailed itemized statements upon request and prohibits them from reporting medical debt to credit agencies, further ensuring that such debts are void if this rule is violated. The bill outlines restrictions on communication with debtors, limits the number of calls to cellular devices, and requires hospitals to inform patients about their rights regarding charity care and medical debt handling. Overall, the bill aims to alleviate the burden of medical debt on consumers and promote transparency in debt collection practices within the healthcare sector.

Statutes affected:
Original Bill: 19.16.100, 19.182.040, 70.41.400, 70.54.005