| Chapter 225 |
| 2024 -- S 2709 SUBSTITUTE A Enacted 06/24/2024 |
| A N A C T |
| RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- MEDICAL DEBT REPORTING |
Introduced By: Senators Murray, Burke, Pearson, Lauria, and Valverde |
| Date Introduced: March 05, 2024 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL |
| REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: |
| CHAPTER 60 |
| MEDICAL DEBT REPORTING |
| 6-60-1. Definitions. |
| As used in this chapter, the following terms shall have the following meanings: |
| (1) "Consumer" shall have the same meaning as such term is defined in § 19-14.9-3. |
| (2) "Consumer reporting agency" shall have the same meaning as such term is defined in |
| § 19-14.9-3. |
| (3) "Debt collector" shall have the same meaning as such term is defined in § 19-14.9-3. |
| (4) "Medical debt" means an obligation of a consumer to pay an amount for the receipt of |
| healthcare services as defined by § 27-81-3, products, or devices, owed to a healthcare facility or a |
| healthcare professional as defined by § 27-81-3. |
| 6-60-2. Medical debt reporting prohibited in contracts with collection entities. |
| A healthcare provider as defined in § 27-81-3, or a healthcare facility authorized or licensed |
| under chapter 17 of title 23, or an emergency medical transportation service certified under chapter |
| 4.1 of title 23, shall not furnish information regarding any portion of a medical debt to a consumer |
| reporting agency. In any contract entered into with a collection entity or debt collector for the |
| purchase or collection of medical debt, there shall be included a provision which that prohibits the |
| reporting of any portion of medical debt to a consumer reporting agency. |
| 6-60-3. Credit reporting agencies. |
| No credit reporting agency shall acquire, record, or report any medical debt, in any manner. |
| A credit reporting agency shall not make a consumer report containing any adverse information |
| that the agency knows or should know is related to medical debt of a consumer. |
| 6-60-4. Medical debt collectors. |
| (a) A creditor, debt collector, or collection agency shall not use any false, deceptive, or |
| misleading information or means when attempting to collect a medical debt or in an attempt to |
| obtain information about a consumer in relation to collection of a medical debt by making a false, |
| deceptive, or misleading representation that the medical debt will be included in a consumer credit |
| report or factored into a credit score. |
| (b) Any correspondence from a creditor, debt collector, or collection agency to a consumer |
| shall include the following language: "The State of Rhode Island general laws prohibit credit |
| bureaus from reporting medical debt or factoring medical debt into a credit score." |
| (c) No creditor or debt collector that knows or should have known about an internal review, |
| external review, or other appeal of a health insurance decision that is pending within sixty (60) days |
| of the consumer's receipt of the financial statement shall: |
| (1) Provide information relative to unpaid charges for healthcare services to a consumer |
| reporting agency; |
| (2) Communicate with the consumer regarding the unpaid charges for healthcare services |
| for the purpose of seeking to collect the charges; or |
| (3) Initiate a lawsuit or arbitration proceeding against the consumer relative to unpaid |
| charges for healthcare services. |
| (d) If a medical debt has already been reported to a consumer reporting agency and the |
| creditor or debt collector who reported the information learns of an internal review, external review, |
| or other appeal of a health insurance decision that is pending within sixty (60) days of the |
| consumer's receipt of the financial statement, such creditor or collector shall instruct the consumer |
| reporting agency to delete the information about the debt. |
| 6-60-5. Enforcement. |
| Any consumer reporting agency or debt collector that fails to comply with the requirements |
| imposed under this chapter, and that does not achieve compliance within thirty (30) days of being |
| notified by the consumer of its noncompliance, is liable to that consumer in an amount equal to the |
| sum of ten dollars ($10.00) per day for each day of noncompliance. If the noncompliance persists |
| beyond the thirty (30) days following the consumer's notification, the consumer may notify the |
| attorney general, who may bring an action against the offending person or entity to enjoin that |
| person or entity from continuing the violation and for any other relief that the court deems |
| appropriate. In the case of any successful action to enforce any provision of this chapter, the costs |
| of the action together with reasonable attorneys' fees as determined by the court shall be borne by |
| the offending consumer reporting agency or debt collector. |
| SECTION 2. This act shall take effect on January 1, 2025. |
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| LC005575/SUB A |
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