Virginia’s legislative session resumed this week, representing an important moment for collection agencies as they navigate amendments proposed by Governor Glenn Youngkin. One of the significant changes under scrutiny is the reevaluation of HB 34 concerning the statute of limitations for medical debt.Â
HB 34
Initially, HB 34 outlined a statute of limitations for medical debt collection contracts, setting a timeframe of three years from the due date on the first invoice for health care services. However, Governor Youngkin’s proposed amendments have refined this framework, shifting the focus to the due date on the final invoice for health care services.Â
The main point of the amendments is to make it clearer when the statute of limitations starts. Specifically, the updated wording highlights that if a payment plan is breached, any legal action must be started within three years from the date of the breach by the debtor.Â
These amendments were carefully reviewed in the legislative chambers. The House voted 52-48 in favor of the changes, while the Senate unanimously approved them with a decisive 40-0 vote. Such bipartisan support highlights the importance of these alterations in shaping the landscape of medical debt collection practices in Virginia.Â
HB 1370
Another important legislative development affecting collection agencies is the passing of restrictions on medical debt credit reporting, as outlined in HB 1370, recently signed into law by Governor Youngkin.Â
HB 1370 introduces restrictions on the ability of certain facilities and healthcare professionals to report medical debt to consumer reporting agencies. Specifically, it prohibits reporting by medical care facilities, healthcare professionals, and emergency medical services agencies. Â
Key revisions include the definition of medical debt, which now excludes debt incurred through credit card transactions for health care services. However, it encompasses all other forms of debt arising from health care services, including products, devices, durable medical equipment, prescription drugs, and transportation costs related to accessing health care services.Â
A New Era Within The State of Virginia
It’s worth noting that these legislative changes are set to come into effect on July 1, 2024, signaling a new era in medical debt collection practices within the state of Virginia.Â
For collection agencies, these developments require a thorough understanding of the amended statutes and proactive adaptation to ensure compliance with the evolving regulatory landscape. Additionally, promoting transparent communication with consumers and implementing fair and ethical collection practices will be crucial in navigating these legislative changes effectively.Â
In conclusion, Virginia’s legislative amendments highlight the state’s dedication to protecting consumer rights while offering clarity and direction to stakeholders in the medical debt collection field. For collection agencies, adhering to these updated regulations is crucial. It’s not just about following the law; it’s about building trust with consumers and maintaining credibility. By doing so, collectors contribute to a more fair and equitable debt collection environment, which benefits everyone involved.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 clientsâ 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. Jenniferâs 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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