The Connecticut legislature yesterday passed Senate Bill 395, which prohibits healthcare providers from reporting medical debt to credit agencies. The bill, which had already passed in the Senate and now awaits the governor’s signature, will take effect on July 1, if signed by Gov. Ned Lamont.
What it Says: The bill prohibits Connecticut healthcare providers, hospitals, and entities affiliated with hospitals from reporting any medical debt to credit agencies for use in credit reports. The bill also mandates that healthcare providers include clauses in their contracts with collection entities that prevent the reporting of medical debt to credit agencies.
- According to the bill, medical debt encompasses obligations related to health care services, products, or devices. However, it does not include debt charged to regular credit cards unless those cards are specifically designated for medical expenses. The law will not void the debt, and healthcare providers can still pursue other avenues for collecting outstanding amounts.
The Debate: The bill sparked significant debate in the House of Representatives, primarily concerning the inclusion of elective surgeries under the medical debt umbrella. While Democrats argued that many elective procedures were necessary to improve patients’ quality of life, Republicans expressed concerns about truly elective procedures, such as cosmetic surgeries, falling under the bill’s protections.
- Ultimately, the House passed the measure with a vote of 106-44, with eight Republicans joining Democrats in approving the bill.
- Republicans did attempt to amend the bill and remove the exemption of reporting medical debt for elective procedures, but the vote to approve the amendment failed.
