Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.
Impact
The enactment of HB 5184 will have significant implications for existing state laws regarding credit reporting and the garnishment process. By explicitly preventing any recording of medical debt on a consumer's credit report and disallowing the execution or attachment of a debtor's primary residence, the bill seeks to offer a clearer protection for homeowners and promote financial stability. This aligns with broader efforts seen across various states to mitigate the impacts of medical debt, which is often a leading cause of bankruptcy in the United States. It also introduces necessary changes to how courts may issue garnishments in the context of medical debt judgments.
Summary
House Bill 5184 aims to address the impact of medical debt on consumer rights by prohibiting credit bureaus from reporting medical debt, thereby safeguarding individuals from adverse credit consequences based on their medical expenses. The legislation defines medical debt specifically as the amount owed for healthcare services, products, or devices, and focuses on protecting consumers from garnishment of wages or the execution of judgments against their primary residences due to unpaid medical bills. This change is intended to alleviate the financial burden on individuals facing health-related expenses and prevent the long-term financial ramifications associated with such debts.
Sentiment
The sentiment surrounding HB 5184 appears to be supportive among advocates for consumer protections, healthcare rights, and financial stability. Proponents argue that the bill is a critical step towards protecting individuals from the aggravating impact of medical debt, which is often beyond a person's control. Concerns may arise from financial institutions and some creditor groups that emphasize the potential risks associated with limiting the ability to report unpaid debts. Nevertheless, the general view is in favor of enhancing consumer protections and reducing stigmas attached to medical debt.
Contention
While HB 5184 is largely regarded positively by those advocating for equitable treatment of consumers, it does present points of contention, particularly among creditors and financial institutions which fear a decrease in their ability to efficiently recover debts owed to them. The elimination of credit reporting for medical debt may also spark debates on the fiscal responsibility of individuals and the potential implications for overall credit markets. Additionally, discussions may arise about how effectively the bill can be enforced and whether exemptions (like for child support and other mandatory repayments) are adequately addressed within this new framework.
Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.
Prohibits hospitals and other medical providers from reporting medical debt to consumer reporting agencies. A violation of this chapter may be pursued on behalf of the consumer by the attorney general.
Establishes a medical debt relief program, to be administered by the general treasurer for the purchase, cancellation and forgiveness of medical debts, based upon certain conditions.
Prohibits hospitals and other medical providers from reporting medical debt to consumer reporting agencies. A violation of this chapter may be pursued on behalf of the consumer by the attorney general.
Prohibits a health insurer from denying a claim for any medical bill based on sole reasoning that the bill may arise from a motor vehicle accident or other third-party claim and prohibits a medical provider from refusing to submit medical for same reason.
Prohibits a health insurer from denying a claim for any medical bill based on sole reasoning that the bill may arise from a motor vehicle accident or other third-party claim and prohibits a medical provider from refusing to submit medical for same reason.
Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.
Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.
Prohibits hospitals and other medical providers from reporting medical debt to consumer reporting agencies. A violation of this chapter may be pursued on behalf of the consumer by the attorney general.