The medical debt credit reporting law will take effect July 1, while the legislature will revisit the statute of limitations amendments next week.
04/09/2024 1:40 P.M.
2.5 minute read
Prohibitions on medical debt credit reporting by certain facilities will advance in Virginia after Gov. Glenn Youngkin signed HB 1370 into law this week.
The governor signed a total of 777 bills, according to a news release.
HB 1370 would prohibit “certain medical care facilities, certain health care professionals, and emergency medical services agencies from reporting any portion of a medical debt, defined in the bill, to a consumer reporting agency. The bill prohibits collection entities collecting or attempting to collect a medical debt from reporting such collection or attempts to collect to a consumer reporting agency.”
The definition of medical debt was updated to not include health care services paid for with a credit card. The legislation states:
“Medical debt” means debt arising from health care services, including products, devices, durable medical equipment, and prescription drugs, and from the provision of transportation to receive health care services. “Medical debt” does not include debt charged to a credit card but does include an open-end or closed-end extension of credit made by a financial institution to a borrower that may be used by the borrower solely for the purpose of the purchase of health care services.
It will take effect on July 1, 2024.
Statute of Limitations
Meanwhile, the governor returned the statute of limitations bill, HB 34, to the legislature with amendments. The legislature, which is expected to reconvene next week, can adopt the amendments with a majority vote, override the amendments with a two-thirds majority, or allow the amended legislation to fail.
HB 34 is one of 116 bills amended by Youngkin, and the legislature will resume its session next week to reconsider the bill.
The amendments focus on when the statute of limitations on an account starts.
Originally, the bill set the statute of limitations on any contract to collect medical debt to within three years of the due date on the first invoice for a health care service, “unless the contract with a hospital or health care provider is for a payment plan that allows for a longer period of time for the collection of debt by the hospital or health care provider.”
In the amendment, the statute of limitations was updated to be within three years of the due date on the final invoice for a health care service.
It also clarifies that “in the event of breach of a payment plan, an action is barred if not commenced within three years from the date of breach by the debtor.”
ACA International will provide updates on HB 34 in ACA Daily as well as on the weekly ACA Huddle at 11 a.m. CST Wednesdays.
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