The Massachusetts Department of Public Health (DPH) has proposed new regulations that would prohibit health care providers and third-party debt collectors from reporting medical debt to consumer credit reporting agencies.
The proposal follows Gov. Maura Healey’s announcement during her 2026 State of the State Address, where a ban on medical debt credit reporting was identified as one of the administration’s key health care initiatives.
The proposed regulations apply to two groups of health care providers:
- Health care facilities and providers licensed by the Department of Public Health, including hospitals, clinics and long-term care facilities.Â
- Health care professionals licensed by boards within the Department of Public Health, including physicians, nurses, dentists and other licensed practitioners.Â
Although separate public hearings will be held for each group, the proposed requirements are the same.
How Medical Debt Is DefinedÂ
Under the proposed regulations, medical debt is defined as any debt incurred or obligation owed directly to a health care provider or health care facility for payment arising from an express or implied agreement for the provision of health care services.
Key Requirements in the Proposed RulesÂ
If adopted, the regulations would establish several new requirements, including:Â
- Health care providers and health care facilities would be prohibited from reporting any portion of medical debt to a consumer reporting agency.Â
- Any contracts executed on or after Jan. 15, 2027, between health care providers or facilities and debt collectors for the purchase or collection of medical debt would be required to include language prohibiting the reporting of medical debt to consumer reporting agencies.Â
- Contracts executed before Jan. 15, 2027, that remain in effect beyond April 15, 2027, would need to be terminated or amended by April 15, 2027, to include the same prohibition.Â
- Failure to comply with the regulations would constitute a violation of Massachusetts General Laws Chapter 93A. The Department of Public Health may refer alleged violations to the Massachusetts Office of the Attorney General.Â
- The Department of Public Health commissioner would have the authority to grant waivers for one or more requirements if a health care provider or facility demonstrates that compliance would create an undue hardship. Requests for a waiver must be supported by written documentation.Â
Ongoing Legal ChallengesÂ
Similar medical debt credit reporting restrictions have faced legal challenges in other states. A pending lawsuit challenging Colorado’s medical debt credit reporting law argues that the state statute is preempted by the federal Fair Credit Reporting Act and that it violates the First Amendment by imposing content-based restrictions on credit reporting.
The outcome of that litigation could have broader implications for similar state laws.Â
Public Hearings and Comment OpportunitiesÂ
The Department of Public Health has scheduled two public hearings to gather feedback on the proposed regulations.Â
July 27 HearingÂ
The first hearing, covering health care facilities and providers licensed by the Department of Public Health, will take place via conference call at 10 a.m. ET on July 27.Â
Interested parties may submit written comments electronically to Reg.Testimony@mass.gov or by mail to:Â
William AndersonÂ
Office of the General CounselÂ
Department of Public HealthÂ
250 Washington StreetÂ
Boston, MA 02108Â
Electronic submissions should be attached as a Word document with “Medical Debt Reporting Requirements for Facilities” in the subject line. Testimony must include the sender’s full name and address. Comments are due by 5 p.m. ET on July 27.Â
July 28 HearingÂ
The second hearing, covering health care providers licensed by boards within the Department of Public Health, will also be held via conference call at 10 a.m. ET on July 28.Â
Written comments may be submitted using the same email or mailing address listed above. Electronic submissions should include “Medical Debt Reporting Requirements for providers licensed by boards within the Department” in the subject line and must include the sender’s full name and address. Comments are due by 5 p.m. ET on July 28.Â
The Department of Public Health will post submitted electronic testimony that complies with its filing requirements on its website.Â
Author:Â Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
