In an important move affecting healthcare services and the collection of medical debts, Florida Governor Ron DeSantis signed legislation into law on May 10th. The bill, known as H.B. 7089/S.B. 1640, was unanimously approved by the Florida Senate and House on March 8th, marking the conclusion of Florida’s legislative session. This legislative development, which brings with it many implications, has garnered attention from various parties, including the Florida Collectors Association (FCA), which closely monitored its progress. The FCA has diligently outlined the bill’s requirements and conducted webinars to ensure compliance among its members.
Healthcare service pricing
One of the core aspects of the bill revolves around healthcare service pricing and the collection of medical debts. Under its provisions, facilities licensed under Chapter 395 of the Florida Statutes, such as hospitals, urgent care centers, and ambulatory surgery centers, are mandated to provide estimates to patients’ health insurers and patients themselves within specified time frames. Additionally, the bill includes provisions for disclosing discrepancies between a patient’s responsibility under their insurance and the discounted self-pay rate.
Moreover, the legislation introduces measures aimed at regulating the behavior of health insurers, requiring them to furnish advanced explanations of benefits upon receiving patient estimates from facilities. However, the enforcement of these requirements is contingent upon the issuance of final rules by the Department of Health and Human Services (HHS), the U.S. Department of Labor (DOL), and the Department of the Treasury.
Collection of Medical Debts
One of the noteworthy provisions of the bill is its restriction on “extraordinary collection actions” by hospitals and ambulatory centers until certain conditions are met, such as determining patient eligibility for financial assistance and providing itemized bills. These actions encompass a range of legal or judicial processes, including reporting adverse information to credit bureaus and initiating civil actions against patients.
Furthermore, the legislation establishes new debt collection exemptions specifically tailored to medical services provided in healthcare facilities. It increases the ceiling on debt collection exemptions for certain types of debt, providing relief to debtors.
Statute of Limitation for Medical Debt
Additionally, the bill institutes a three-year statute of limitations for legal actions related to medical debt incurred in hospitals, ambulatory surgical centers, and urgent care centers. This limitation period commences from the date the facility refers the debt to a third party for collection.
In Conclusion
Even though the bill passed, there are still concerns about some parts of it. This has led organizations like the FCA to keep advocating for changes. They’re already talking about making amendments to clear up any confusion in the law and make sure it works well.
As Florida gears up for the legislation to take effect on July 1, 2024, various parties are bracing for significant changes in healthcare pricing transparency and medical debt collection practices. The impact of this legislation reverberates not only within the state but also serves as a potential blueprint for similar reforms nationwide. Stay tuned for further updates as parties navigate the intricacies of this transformative legislative landscape.
Author: 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.
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