Tennessee House Bill HB2017

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24
• Refer: 1/25/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 8; Title 16; Title 18; Title 20; Title 21; Title 27; Title 28; Title 29; Title 45; Title 47; Title 63 and Title 68, relative to credit data.

Impact

This bill aims to significantly reform how medical debts are handled within consumer credit reporting in Tennessee. The prohibition on reporting medical debt to credit agencies seeks to prevent negative impacts on consumers' credit ratings, particularly those who may already be vulnerable or facing financial challenges. By separating medical debt from the consumer reporting landscape, the legislation is intended to provide relief to many individuals, potentially leading to better access to loans and credit for consumers with medical debt histories.

Summary

House Bill 2017 seeks to amend various titles of the Tennessee Code Annotated to address the reporting of medical debts by healthcare providers. Specifically, beginning July 1, 2024, healthcare providers are prohibited from reporting a patient's medical debt to consumer reporting agencies. Instead, they may only report such debts to debt collection agencies. This amendment reflects a growing concern about the impact that medical debt has on consumer credit scores and the overall financial well-being of individuals who receive healthcare services.

Contention

The bill could generate debate among various stakeholders. Supporters may argue that this measure is a vital step toward consumer protection and financial equity, especially for those affected by unforeseen medical costs. Conversely, entities such as debt collection agencies may express concerns that such provisions could hinder their ability to collect payments for services rendered, affecting the financial health of healthcare providers. Opponents may also raise the question of whether this approach adequately addresses the root problems related to medical debt, or if it creates an unintended loophole that could be exploited.

Enforcement

In the event of non-compliance, the bill categorizes violations as unfair or deceptive practices under the Tennessee Consumer Protection Act, which empowers the Attorney General to take enforcement actions. This aspect of the legislation emphasizes the significance of adherence to new reporting practices and positions the state as an active regulator in protecting its citizens from potentially damaging financial practices. Overall, HB2017 symbolizes a systemic shift in addressing the understated yet impactful issue of medical debt within the state's lending and healthcare frameworks.