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 contract 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 collectors provide detailed itemized statements upon request and prohibits them from reporting medical debts to credit agencies unless specific conditions are met. Furthermore, the bill restricts communication methods used by debt collectors, limits the frequency of contact, and requires hospitals to inform patients about their rights regarding charity care and medical debt implications. Overall, the bill aims to ensure transparency and fairness in the debt collection process, particularly for consumers facing financial challenges due to medical expenses.

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