A billionaire’s efforts to introduce a new state law in Idaho aimed at protecting individuals with medical debt appears to be ready to cross the goal line, with published reports indicating the introduction of a bill is imminent.
The bill, called the Idaho Patient Act, would require healthcare facilities to wait up to 300 days before sending a debt to a third-party collection agency or deciding to sue an individual who has not paid his or her medical bill. The bill would also cap the legal fees that collection agencies would be able to charge individuals at $350 for contested actions and $750 for uncontested actions.
Frank VanderSloot, a billionaire and considered to be the richest man in the state, has been spearheading the effort to get the law passed as part of his fight against what he deems to be “aggressive” collection efforts by a specific agency in Idaho. VanderSloot is the CEO of a wellness company. Some of his employees were being sued by a collection agency for unpaid medical debts. VanderSloot objected to what he labeled as “aggressive” collection efforts by the agency, and has pledged $1 million to help individuals in Idaho defend themselves against collection lawsuits, especially those filed by the agency in question.
Along with helping defend individuals against collection lawsuits, VanderSloot has also been trying to get the Idaho legislature to enact a law to protect consumers. He has convinced the state’s House Assistant Majority Leader and the Senate Majority Caucus Chairman to sponsor the Idaho Patient Act. The bill would require healthcare providers to send bills to a patient’s insurance provider within 30 days from the date of discharge or from when the treatment was administered, then 30 more days to send the patient a summary of services. From there, the healthcare provider would have to wait 60 days until it could charge any interest on the unpaid debts, and 180 days to sue, place the debt with a collection agency, or report the debt to a credit bureau.
A lawyer who works for the agency being targeted by VanderSloot is a member of the state legislature, and he said he would oppose the bill as drafted, because it is too much regulation and about the additional costs that it will create for healthcare facilities.
