2024 -- S 2709

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LC005575

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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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

     Referred To: Senate Commerce

     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 or alleged obligation of a consumer to pay any

amount whatsoever related to the receipt of healthcare services, products, devices, durable medical

equipment or prescription drugs including, but not be limited to, those provided by a physician as

defined in § 27-9.2-4, a healthcare provider as defined in § 27-81-3, and emergency medical

transportation services provided pursuant to the provisions of chapter 4.1 of title 23.

     "Medical debt" does not include debt charged to a credit card unless the credit card is issued

under an open-ended or closed-end plan offered specifically for the payment of healthcare services,

products, or devices provided to a person.

     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 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 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 collect 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 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.

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     6-60-5. Reported medical debt void.

     Any portion of medical debt information that is furnished by any healthcare facility or

healthcare provider or by the facility's or provider's agent to a consumer reporting agency shall

render the debt void and uncollectable.

     6-60-6. 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 three (3) working 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 fourth day 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 upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

MEDICAL DEBT REPORTING

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     This act prohibits hospitals and other medical providers from reporting medical debt to

consumer reporting agencies. A violation of this chapter may be pursued on behalf of the consumer

by the attorney general.

     This act would take effect upon passage.

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