The amendments from Gov. Glenn Youngkin update the statute of limitations to be within three years of the due date on the final invoice for a health care service, not the first invoice.
04/18/2024 2:15 P.M.
2.5 minute read
Virginia resumed its legislative session this week to consider bill amendments from Gov. Glenn Youngkin, including changes to HB 34 on the statue of limitations for medical debt.
The governor returned the statute of limitations to the legislature with amendments focused 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.”
The House voted on the amendments 52-48, and the Senate unanimously approved the amendments 40-0.
Medical Debt Credit Reporting
Prohibitions on medical debt credit reporting by certain facilities included in HB 1370 were signed into law by Gov. Youngkin earlier this month.
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.
About 30 states remain in legislative session, include several considering medical debt proposals.
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