Tennessee Senate Bill SB1833

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24
• Failed: 2/20/24

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

The implementation of this bill will have a profound impact on state laws concerning the treatment of medical debt. By limiting how and when medical debt can be reported, SB1833 empowers consumers and aligns Tennessee's regulations with increasing national scrutiny on the methods of debt collection and reporting. Additionally, the bill establishes that any violations of its provisions will be treated as a breach of the Tennessee Consumer Protection Act, thereby enabling consumers to seek legal recourse and holding healthcare providers accountable. This legal framework aims to foster fair practices in the debt collection process, particularly in the healthcare sector.

Summary

Senate Bill 1833 aims to amend various sections of the Tennessee Code Annotated to address the issue of medical debt and its reporting to consumer reporting agencies. The bill is significant as it introduces strict measures aimed at protecting consumers from the adverse effects of medical debt being reported, which can impact their credit scores. Specifically, starting July 1, 2024, healthcare providers will be prohibited from reporting medical debt directly to consumer reporting agencies. This provision is expected to shield consumers from the financial repercussions associated with medical debts, potentially allowing for better recovery and credit management for individuals who face healthcare-related financial challenges.

Contention

There may be potential contention surrounding this bill, particularly from entities that rely heavily on reporting medical debts as part of their financial operations. Healthcare providers and debt collection agencies might argue that the inability to report medical debt could disrupt their operations and potentially lead to greater financial losses. Furthermore, there could be concerns about how this legislation might affect the overall accountability of patients to pay their medical bills, raising questions about the balance between consumer protection and the rights of creditors in the healthcare space.