Bill > S2806

This bill, known as the "Louisa Carman Medical Debt Relief Act," aims to protect patients from aggressive debt collection practices related to medical expenses. It clarifies what constitutes a "collection action," which generally includes selling a patient's debt, reporting negative information to credit bureaus, or pursuing legal means to collect, but excludes simple billing inquiries or collecting co-pays at the point of service. The bill prohibits medical creditors and debt collectors from reporting medical debts to consumer reporting agencies for services rendered after the bill's effective date, and also prevents credit bureaus from reporting paid medical debts or those under $500. Furthermore, it mandates a 120-day waiting period after the first bill is sent before any collection actions can be taken, during which a reasonable payment plan must be offered, and requires a 30-day notice before initiating legal proceedings. The act also restricts the sale of medical debt unless the buyer agrees not to engage in certain aggressive collection tactics, limits interest rates on medical debt to three percent annually, and prohibits wage garnishment for patients earning below 600% of the federal poverty level. It also includes provisions to halt collection actions and remove reported debts if an insurance appeal is pending or if the debt has been paid, with violations subject to enforcement by the Attorney General.

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https://www.njleg.state.nj.us/bill-search/2024/S2806