Virginia House Bill HB566

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Public hospitals; medical debt collection practices.

Impact

The legislation aims to protect patients from aggressive debt collection methods commonly employed by healthcare providers. By preventing hospitals from initiating extraordinary collection actions—such as wage garnishment or placing liens on homes—the bill aims to foster a more supportive financial environment. Moreover, the establishment of a Financial Assistance Ombudsman Office within hospitals provides a resource for individuals navigating their financial obligations arising from medical treatments.

Summary

House Bill 566 introduces significant amendments to the Code of Virginia by establishing provisions for medical debt collection practices, mandating public hospitals to offer structured payment plans for their patients. This bill specifically stipulates that any payment plans must take into account the household income, ensuring that monthly payments do not exceed five percent of a household's total monthly income. Additionally, these plans are designed to commence only after a 90-day waiting period post-treatment or discharge, allowing patients ample time to arrange their finances.

Contention

Notable points of contention surrounding HB566 revolve around its implications for hospitals’ financial operations. Some stakeholders argue that limiting collection practices may hinder the ability of hospitals to collect debts owed and could therefore impact their profitability. Conversely, advocates for the bill emphasize the importance of patient rights and equitable treatment, arguing that the legislature must prioritize consumer protection over revenue collection. The provisions also address language accessibility, mandating that financial communications be available in multiple languages to accommodate non-English speaking patients, which some believe is necessary for equitable healthcare access.