Governor Kathy Hochul recently approved an important update to New Yorkās Fair Medical Debt Reporting Act, aimed at resolving ambiguities and strengthening consumer protections. The amendment, signed on November 22, 2024, took effect immediately and applies retroactively to the lawās original implementation date of December 13, 2023.Ā
Refining the Definition of Medical DebtĀ
The amendment, introduced through SB 8373, clarifies the definition of āmedical debtā to ensure consistency across state laws. Previously, the General Business Law and Public Health Law used differing definitions, creating confusion. The updated definition excludes debt charged to credit cards unless the card is specifically tied to a health care financing plan. This adjustment helps streamline the law and improve its application.Ā
Enhancing Consumer ProtectionsĀ
The Fair Medical Debt Reporting Act is designed to protect consumers from the negative financial impacts of medical debt. By prohibiting consumer reporting agencies from collecting or including medical debt in credit reports, the law aims to reduce the burden on individuals navigating health care expenses.Ā
Looking AheadĀ
As New York prepares for its 2025 legislative session, Governor Hochulās upcoming State of the State address and proposed budget are expected to focus on affordability, including measures related to medical debt. The New York State Collectors Association anticipates this theme will remain central to policy discussions, potentially leading to additional reforms.Ā
This amendment represents a meaningful step toward simplifying and improving protections for New Yorkers managing medical debt. As the state moves into the new year, addressing health care affordability and related challenges will likely remain a priority.Ā
Author:Ā 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 clientsā 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. Jenniferās 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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