SB0276 - Health care debt and costs.

1 Co-Sponsor

Health care debt and costs. Adds a new chapter to the Indiana Code governing hospitals' billing practices and financial disclosures to patients. Provides that the unpaid earnings of a consumer who resides in Indiana may not, at any time, be attached by garnishment in satisfaction of: (1) any amount of health care debt owed or alleged to be owed by the consumer; or (2) in an action against the consumer in which a judgment has been entered, any amount of the judgment that represents health care debt determined to be owed by the consumer. Prohibits a health care provider from reporting or furnishing to a consumer reporting agency any information related to health care debt owed or alleged to be owed by a consumer who resides in Indiana. Defines a "third party furnisher" as a person that regularly and in the ordinary course of business furnishes to consumer reporting agencies information about the transactions and experiences of health care providers with consumers, including information regarding delinquent account actions. Requires a health care provider to include in any contract entered into with a third party furnisher a provision that prohibits the reporting or furnishing to a consumer reporting agency any information related to health care debt owed or alleged to be owed by a consumer, including information concerning any delinquent account action taken with respect to health care debt. Provides that if information related to health care debt is reported to a consumer reporting agency in violation of these provisions: (1) the consumer who owes or is alleged to owe the health care debt is relieved from any liability to pay the amount of health care debt reported; and (2) the health care provider and any third party furnisher engaged by the health care provider before or after the reporting of the information may not collect or pursue the collection of the amount reported. Prohibits a consumer reporting agency from recording or retaining in the file of a consumer any information that is: (1) related to health care debt incurred or alleged to be incurred by the consumer; and (2) reported to the consumer reporting agency after June 30, 2024. Provides that if a consumer reporting agency receives a request from a consumer to delete any record of health care debt maintained in the file of the consumer, the consumer reporting agency shall, not later than five business days after receiving the request, take all lawful and reasonable actions to delete from the consumer's file the record of the health care debt, regardless of when the health care debt was reported to the consumer reporting agency. Prohibits a health care provider from: (1) charging or collecting interest on the unpaid balances of health care debt at a rate that exceeds an annual rate of 9%; or (2) initiating any delinquent account action with respect to health care debt during the pendency of an appeal by the consumer for the denial of insurance or other third party coverage for the health care services, products, or devices with respect to which the health care debt was incurred. Prohibits a creditor from obtaining or using a consumer's medical information in connection with any determination of the consumer's eligibility, or continued eligibility, for credit, as required under the federal Fair Credit Reporting Act. Provides that a person that violates these provisions commits a deceptive act that is actionable only by the attorney general under the Indiana statute concerning deceptive consumer sales. Amends the statute concerning adverse claims against deposit accounts to prohibit a depository financial institution that receives notice of an adverse claim based on health care debt owed or alleged to be owed by a consumer from: (1) recognizing the adverse claim in any manner; or (2) placing a hold on, or otherwise restricting withdrawal of funds from, a deposit account in which the consumer who is the subject of the adverse claim has an interest. Provides that: (1) any amount of health care debt owed or alleged to be owed by a consumer; or (2) in an action against a consumer in which a judgment has been entered, any amount of the judgment that represents health care debt determined to be owed by the consumer; does not constitute a lien against the consumer's principal residence or against certain personal property of the consumer. Provides that in any action filed, in a court of competent jurisdiction in Indiana, for the recovery of health care debt owed or alleged to be owed by a consumer, the court does not have and shall not entertain jurisdiction in any: (1) action of attachment against the real or personal property of the consumer; or (2) action of garnishment; upon, or any time after, the filing of the complaint in the action. Provides that in any action filed, in a court of competent jurisdiction in Indiana, for the recovery of health care debt owed or alleged to be owed by a consumer, the principal residence of the consumer is not liable to judgment or attachment or to be sold on execution against the consumer.