NYS new medical debt law

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gerard2006

Member
Jurisdiction
New York
Guys - I currently have a 820 credit score but fearful $800 worth of medical debt is going to appear soon on something I've arguing with the provider on. On this diagnostic treatment, they promised me that I have no deductible but then got hit by a bill by a 3rd party that they sent my blood for some specialized testing. The insurance company hasn't helped much either. Question - can this debt be reported to collection agency or is this law completely in effect today?
New York removes medical debt from credit reports
NYS Governor Hochul Signs Legislation Prohibiting Hospitals, Health Care Professionals, and Ambulance Companies from Reporting Medical Debt to Credit Agencies

Part B - will this affect future employment if I change jobs? I guess my credit score will perhaps drop to 720

Thanks
 
You have to look at the actual statutes.

Article 49-A of the Public Health Law is the Medical Debt Reporting Law:

newyork.public.law

N.Y. Pub. Health Law Art. 49-A – Med. Debt Reporting

Laws of New York Article 49-A, Medical Debt Reporting. Refreshed: 2023-12-20
newyork.public.law newyork.public.law

Section 4926 has links to covered entities and refers to Education Law Title 8 which is at:

Title VIII

Title VIII - The Professions
www.op.nysed.gov www.op.nysed.gov

Labs appear to be covered entities under Article 165.
 
gerard2006 said:
Question - can this debt be reported to collection agency or is this law completely in effect today?
Click to expand...
NY and CO state residents are protected by new state laws regarding reporting medical debt.

READ on learn more.

NOVEMBER 23, 2022

Albany, NY

Governor Hochul Signs Legislation to Protect Patients with Medical Debt


Legislation (S.6522A/A.7363A) Protects Patients Facing Steep Medical Bills from Certain Penalties Against Their Wages or Property
Part of 2022 State of the State Goal to Protect New York's Consumers and Improve Financial Health
Traducción al español
Governor Kathy Hochul today signed legislation (S.6522A/A.7363A) to protect patients facing steep medical bills that can lead to wage garnishment or liens against their property.
"No one should face the threat of losing their home or falling into further debt after seeking medical care," Governor Hochul said. "I'm proud to sign legislation today that will end this harmful and predatory collection practice to help protect New Yorkers from these unfair penalties. With medical debt a burden for far too many, this is an important step to address this crucial issue."
Legislation (S.6522A/A.7363A) amends the civil practice law and rules to prohibit health care providers from placing home liens on an individual's primary residence or garnishing wages to collect on medical debt. Governor Hochul outlined her goals to protect New York's consumers and improve their financial health in her 2022 State of the State Address, which includes addressing medical debt and protecting consumers from abusive and punitive practices that lead to increased and undeserved financial pressure.
Nearly half of American adults struggle to afford health care costs, and more than 50,000 New Yorkers have been sued for medical debt over the past five years; this problem is most pervasive in Upstate New York. Previously, hospitals or health care providers had been able to impose and enforce liens on a patient's primary residence to satisfy a judgment in a medical debt lawsuit, leading to housing instability and devastating financial consequences for vulnerable New Yorkers.
State Senator Gustavo Rivera said, "New Yorkers should not fear losing their homes or livelihoods as a result of seeking medical care, especially during such challenging financial times. I want to thank Governor Hochul for signing my bill into law to protect New Yorkers from facing liens on their homes or wage garnishment by medical institutions in their effort to collect medical debt. We must work together to eradicate medical debt from our State and I am thrilled that we are taking this important first step."
Assemblymember Richard Gottfried said, "New Yorkers struggle with health care costs even when they have insurance. People seeking care end up with bills to cover ever-increasing out-of-pocket costs, including high deductibles, copays and the various fees insurance doesn't cover. People's homes and income should not be threatened to satisfy medical debt. I thank Governor Hochul for signing S.6522A/A.7363A into law to help protect patients from these egregious practices. This bill would not have been accomplished without the tenacious hard work and advocacy of Senator Rivera, other legislative colleagues and advocates, especially the Community Service Society."

www.governor.ny.gov

Governor Hochul Signs Legislation to Protect Patients with Medical Debt

Governor Hochul signed legislation to protect patients facing steep medical bills that can lead to wage garnishment or liens against their property.
www.governor.ny.gov www.governor.ny.gov

New York Removes Medical Debt From Credit Reports

Medical debt will no longer appear on the credit reports of New York residents

By Associated Press
|
Dec. 13, 2023
|

ALBANY, N.Y. (AP) — Unpaid medical debt will no longer appear in New York residents' credit reports under a bill signed into law by Gov. Kathy Hochul on Wednesday.
The law prohibits credit agencies from collecting information about or reporting medical debt. The law also bans hospitals and health care providers in the state from reporting such debt to the agencies.


New Medical Debt Reporting Law Takes Effect in New York

Published December 14, 2023 by Shannon P. Miller


A new law in New York, which prohibits the furnishing of medical debt to a consumer reporting agency and could create compliance concerns for the debt collection industry, came into effect on Dec. 13. The text of the Fair Medical Debt Reporting Act (FMDRA) can be found here.

Approved by the New York legislature in June, the law prohibits the furnishing to a credit reporting agency of certain covered "medical debt," which it defines as "health care services, products, or devices" provided by a hospital licensed under [New York law], a health care professional authorized under [New York law], or an ambulance service certified under [New York law].

The law requires that these entities include in any contract for the sale or collection of medical debt a provision that prohibits the purchaser or debt collector from reporting the medical debt.

The law also prohibits consumer reporting agencies from including covered medical debt in a consumer report or maintaining it in a consumer's file.

While the FMDRA's definition of "medical debt" covers "an obligation or alleged obligation of a consumer to pay any amount whatsoever related to the receipt of health care services, products, or devices" it does exclude "debt charged to a credit card unless the credit card is issued under an open-ended or closed-end plan offered specifically for the payment of health care services, products, or devices."

The FMDRA provides that any medical debt furnished to a CRA in contravention of the law becomes void. Collecting on a "void" debt obviously creates potential liability under the federal Fair Debt Collection Practices Act and other state consumer protection laws.

The compliance concerns for the industry will be related to confirming that any medical debt being purchased or placed for collection has not been previously reported to a CRA by the medical service provider to prevent unintentional attempts to collect a debt considered void, as well as confirming that any credit card debt purchased or placed does not fall within the FMDRA's definition of "medical debt" to prevent unintentional furnishing of information related to a medical debt.

New Medical Debt Reporting Law Takes Effect in New York | The CFS Blog

A new law in New York, which prohibits the furnishing of medical debt to a consumer reporting agency and could create compliance concerns for the debt collection industry, came into effect on Dec. 13. The text of the Fair Medical Debt Reporting Act (FMDRA) can be found here.
consumerfsblog.com consumerfsblog.com
 
Thank you. In your paste above, it says the law goes into effect Dec 13. However, these bills are from last summer. Do you know if they can report to credit agencies in the future given treatment dates were prior to Dec 13?
 
gerard2006 said:
Thank you. In your paste above, it says the law goes into effect Dec 13. However, these bills are from last summer. Do you know if they can report to credit agencies in the future given treatment dates were prior to Dec 13?
Click to expand...
The law is now in effect in NY state.
I suggest you speak to a couple NY state licensed attorneys.

I know the answer, I'm an attorney (also licensed in NY state, along with 15 other states), but I'm not your attorney.

Answering your question could be construed by others as practicing law via the internet, which isn't permitted.

Good luck.
 
I can't afford an attorney for this issue. Is there a website that publishes full details of the law? I did a lot of searches on google for the article and section referenced above but can't find any site that has published the whole law. I would assume that it would spell out the answer I'm looking for only if I can find it
 
gerard2006 said:
I can't afford an attorney for this issue. Is there a website that publishes full details of the law? I did a lot of searches on google for the article and section referenced above but can't find any site that has published the whole law. I would assume that it would spell out the answer I'm looking for only if I can find it
Click to expand...
The link to the law was given in the first response.

Honestly, you should consider just paying the debt. Dip into your assets a bit and take care of it.
 
gerard2006 said:
I would assume that it would spell out the answer I'm looking for only if I can find it
Click to expand...
What you seek is out there, mate. If your finances are as you revealed, you'll simply need to continue searching diligently, intensely.


Matthew 7:7 ​
New King James Version
"Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you.
 
If the past due bills from last summer have not appeared on your credit report yet, they cannot be reported at least since December 13 no matter when they were incurred.

The law is not exactly clear about debts reported prior to December 13 but I believe that the intent of the law is to remove all such existing items from credit reports.

Check all three of your credit reports at www.annualcreditreport.com and see if it's on any of them. If it is follow the instructions of each credit bureau disputing the item and citing the law.

If they refuse to remove it, call Gov Hochul's office for assistance.
 

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