Pause COVID Medical Debt

Section 1. The public health law is amended by adding a new section 2828 to read as follows:

§ 2828. COVID-19 pandemic medical debt requirements. 1. Definitions. The following words or phrases, as used in this section, shall have the following meanings:

(a) "Collection action" means any of the following:

(i) Selling an individual's debt to another party, except if, prior to the sale, the medical creditor has entered into a legally binding written agreement with the medical debt buyer of the debt pursuant to which:

(1) The medical debt buyer or collector is prohibited from engaging in any collection actions, as defined herein, to obtain payment for the care;

(2) The medical debt buyer is prohibited from charging interest on the debt in excess of that described in subdivision three of this section;

(3) The debt is returnable to or recallable by the medical creditor upon a determination by the medical creditor or medical debt buyer that the individual is eligible for financial assistance; and

(4) If the individual is determined to be eligible for financial assistance and the debt is not returned to or recalled by the medical creditor, the medical debt buyer is required to adhere to procedures which shall be specified in the agreement that ensure that the individual does not pay, and has no obligation to pay, the medical debt buyer

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD16413-02-0

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and the medical creditor together more than he or she is personally responsible for paying in compliance with this section.

(ii) Reporting adverse information about a patient to a consumer reporting agency; or

(iii) Actions that require a legal or judicial process, including but not limited to:

(1) Placing or executing a lien on the individual's property;

(2) Attaching or seizing an individual's bank account or any other personal property;

(3) Commencing or prosecuting a civil action against an individual;

(4) Garnishing an individual's wages; or

(5) Any other involuntary collection activity.

(b) "Consumer reporting agency" means any person, which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.

(c) "Declared state disaster emergency" means the declaration of a state of emergency pursuant to article two-B of the executive law.

(d) "Healthcare professional" means a person licensed or certified pursuant to title eight of the education law.

(e) "Healthcare services" means services for the diagnosis, prevention, treatment, cure or relief of a physical, dental, behavioral substance use disorder or mental health condition, illness, injury or disease. These services include, but are not limited to, any procedures, products, devices or medications.

(f) "Hospital" means all providers licensed under this article.

(g) "Medical debt" means a debt arising from the receipt of healthcare services.

(h) "Medical debt buyer" means a person or entity that is engaged in the business of purchasing medical debts for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney for litigation in order to collect such debt.

(i) "Medical debt collector" means any person or entity that regularly collects or attempts to collect, directly or indirectly, medical debts originally owed or due or asserted to be owed or due to another. A medical debt buyer is considered to be a medical debt collector for all purposes.

(j) "Patient" means the person who received healthcare services, and for the purposes of this section shall include: a parent if the patient is a minor; a legal guardian if the patient is an adult under guardianship; an authorized representative; or a guarantor.

(k) "Period of suspension" means a period consisting of the first day of a declared state disaster emergency related to the COVID-19 pandemic and until no less than sixty days after a declared state disaster emergency related to the COVID-19 pandemic is no longer in effect anywhere in the state.

2. Involuntary collection activity. No hospital or healthcare professional shall engage in any collection actions during the period of suspension.

3. No accrual of interest. Interest shall not accrue on any medical debt described under subdivision two for which collection was suspended for the period of suspension.

4. Notice. To inform patients of the actions taken in accordance with this section and ensure an effective transition, all hospitals and healthcare professionals shall:

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(a) Not later than fifteen days after the effective date of this section, notify patients:

(i) of the actions taken in accordance with subdivisions two and three of this section for whom collections have been suspended and interest waived;

(ii) of the option to continue making payments toward any amount due; and

(iii) that the program described in this section is a temporary program.

(b) Beginning on the first day after the expiration of the period of suspension, carry out a program to provide no fewer than six notices by postal mail, telephone or electronic communication to patients indicating:

(i) when the patient's normal payment obligations will resume;

(ii) with respect to notices submitted by hospitals, that the patient may be eligible to enroll in the hospital's financial assistance plan pursuant to section twenty-eight hundred seven-k of this article; and

(iii) with respect to notices submitted by healthcare professionals, that the patient may be eligible to enroll in a financial assistance plan, if the healthcare professional has a financial assistance policy for his or her patients.

5. Proof of submission of claim. With respect to patients who are uninsured on the date that the treating hospital or healthcare professional renders testing or treatment services related to COVID-19, including, but not limited to, diagnostic evaluations, testing or other methods to rule out diseases with similar symptoms to COVID-19, no hospital or healthcare professional may engage in any collection actions to collect payment for such services, unless the treating hospital or healthcare professional produces a sworn affidavit that he, she or it submitted a claim for payment for such services to the federal department of health and human services, health resources and services administration (HRSA), in accordance with federal law, and that HRSA denied the claim.

6. Private right of action. Every violation of this section shall be deemed a deceptive act and practice subject to enforcement under article twenty-two-A of the general business law. Nothing in this section shall be construed to restrict any right which any person may have under any other statute or the common law.

§ 2. The debtor and creditor law is amended by adding a new article 10-B to read as follows:

ARTICLE 10-B

TEMPORARY RELIEF FROM COLLECTION OF MEDICAL DEBT DURING THE

COVID-19 PANDEMIC Section 286. Definitions.

287. Requirements.

§ 286. Definitions. As used in this article, the following terms shall have the following meanings:

1. "Collection action" means any of the following:

(a) Selling an individual's debt to another party, except if, prior to the sale, the medical creditor has entered into a legally binding written agreement with the medical debt buyer of the debt pursuant to which:

(i) The medical debt buyer or collector is prohibited from engaging in any collection actions, as defined herein, to obtain payment for the care;

(ii) The medical debt buyer is prohibited from charging interest on the debt in excess of that described in this section;

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(iii) The debt is returnable to or recallable by the medical creditor upon a determination by the medical creditor or medical debt buyer that the individual is eligible for financial assistance; and

(iv) If the individual is determined to be eligible for financial assistance and the debt is not returned to or recalled by the medical creditor, the medical debt buyer is required to adhere to procedures which shall be specified in the agreement that ensure that the individual does not pay, and has no obligation to pay, the medical debt buyer and the medical creditor together more than he or she is personally responsible for paying in compliance with this section.

(b) Reporting adverse information about a patient to a consumer reporting agency; or

(c) Actions that require a legal or judicial process, including but not limited to:

(i) Placing or executing a lien on the individual's property;

(ii) Attaching or seizing an individual's bank account or any other personal property;

(iii) Commencing or prosecuting a civil action against an individual;

(iv) Garnishing an individual's wages; or

(v) Any other involuntary collection activity.

2. "Consumer reporting agency" means any person, which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.

3. "Declared state disaster emergency" means the declaration of a state of emergency pursuant to article two-B of the executive law.

4. "Healthcare professional" means a person licensed or certified pursuant to title eight of the education law.

5. "Healthcare services" means services for the diagnosis, prevention, treatment, cure or relief of a physical, dental, behavioral substance use disorder or mental health condition, illness, injury or disease. These services include, but are not limited to, any procedures, products, devices or medications.

6. "Hospital" means all hospitals licensed under article twenty-eight of the public health law.

7. "Medical debt" means a debt arising from the receipt of healthcare services.

8. "Medical debt buyer" means a person or entity that is engaged in the business of purchasing medical debts for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney for litigation in order to collect such debt.

9. "Medical debt collector" means any person or entity that regularly collects or attempts to collect, directly or indirectly, medical debts originally owed or due or asserted to be owed or due to another. A medical debt buyer is considered to be a medical debt collector for all purposes.

10. "Patient" means the person who received healthcare services, and for the purposes of this article shall include: a parent if the patient is a minor; a legal guardian if the patient is an adult under guardianship; an authorized representative; or a guarantor.

11. "Period of suspension" means a period consisting of the first day of a declared state disaster emergency related to the COVID-19 pandemic and until no less than sixty days after a declared state disaster emergency related to the COVID-19 pandemic is no longer in effect anywhere in the state.

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§ 287. Requirements. 1. Temporary relief from collection of medical debt. All medical debt buyers and collectors shall suspend all payments due for medical debt through the period of suspension.

2. No accrual of interest. Interest shall not accrue on any medical debt described under subdivision one of this section for which payment was suspended for the period of suspension.

3. Involuntary collection activity. No medical debt buyer or collector shall engage in any collection actions during the period of suspension.

4. Notice. To inform patients of the actions taken in accordance with this section and ensure an effective transition, all medical debt buyers and collectors shall:

(a) Not later than fifteen days after the effective date of this section, notify patients:

(i) of the actions taken in accordance with subdivisions one and two of this section for whom payments have been suspended and interest waived;

(ii) of the actions taken in accordance with subdivision three of this section for whom collections have been suspended;

(iii) of the option to continue making payments toward any amount due; and

(iv) that the program described under this section is a temporary program.

(b) Beginning on the first day after the expiration of the period of suspension, carry out a program to provide no fewer than six notices by postal mail, telephone or electronic communication to patients indicating:

(i) when the patient's normal payment obligations will resume; and

(ii) that the patient may be eligible to enroll in a financial assistance plan pursuant to any applicable and available financial assistance policy of either the medical debt buyer or collector.