New Jersey members are seeking feedback from health care clients in the bill’s early stages.
1/28/2020 11:30
The New Jersey State Legislature may consider a bill, currently under review at the committee level, that could delay referral of medical debts to collection agencies while providing income-based repayment options for consumers.
ACA International member Elizabeth Clifford, president of Heritage Financial Recovery Services in New Jersey, said agencies in the state and leaders with the New Jersey Association of Collection Agencies are monitoring its progress.
“We’ll be keeping an eye on this and will also look for feedback from medical clients,” Clifford said.
Clifford, while advocating for the industry at a recent event in honor of New Jersey Assemblyman Robert Auth, R-Haskell, said she also had the opportunity to discuss the legislation there.
According to the bill synopsis it, “Delays when medical debt may be sent to a collection agency and provides for income-based repayments; provides for deferment and discharge or outstanding medical debt under certain circumstances.”
Components of the proposal include:
- “This bill revises the requirements for collecting outstanding debts for health care services, including delaying when debts may be referred to collection agencies, requiring the option of income-based repayment plans, providing for deferrals on repayment in the event of temporary total disability, and providing for discharge of the debt in the event of permanent total disability or death.”
- “Specifically, the bill prohibits a health care facility or health care professional from referring the outstanding balance of any amount owed by a patient for health care services to a collection agency or for legal action until at least 90 days after the date the patient was first provided a bill for the health care services.”
- “Prior to referring the debt to a collection agency or for legal action, the facility or professional will be required to offer the patient the option to participate in an income-based repayment plan, under which the patient agrees to make monthly payments in a reasonable and affordable amount that does not exceed 15 % of the patient’s discretionary income. The patient will be required to provide appropriate documentation to verify the patient’s discretionary income;” and
- “A debt that is subject to an income-based repayment plan may not be referred to a collection agency or for legal action for such time as the patient is compliant with the repayment plan. A patient will be deemed to be compliant with the repayment plan if the patient makes at least 11 scheduled payments within a 12-month period.”
ACA’s team is also working on advocacy at the federal level in connection with legislation that could impact medical billing and consumers’ knowledge of unpaid bills.
H.R. 5330, the Consumer Protection for Medical Debt Collections Act, would prohibit the accounts receivable management industry from engaging in activities to collect or attempting to collect medical debt for two years.
Members may read more about the federal advocacy efforts here:
Health Care Providers Voice is Critical to Medical Debt Legislation Advocacy
Call to Action – Advocating for Changes to Flawed Medical Debt Legislation
Advocacy opportunities are also available at the upcoming Washington Insights Fly-In, May 19-21, in Washington, D.C. Registration is open now and stay tuned for more details about speakers and meetings on Capitol Hill.