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HB 3754

INS CD-OUTSTANDING BALANCE

104th Regular Session Introduced by Mary Gill

Requires 15-day pre-notice and 30-day after bill before referring a patient to collections, giving time to pay or arrange a plan; violations are unlawful under the Consumer Fraud A

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Bill Summary · HB 3754

HB 3754 — INS CD-OUTSTANDING BALANCE (Summary)

Sponsor: Rep. Mary Gill
Introduced: 02/18/2025 (filed 03/04/2025)
Current status: House Floor Amendment No. 1 (filed 04/08/2025) replaces the original insurance-code language; amendment referred under Rule 19(c) to the Rules Committee.

Purpose / Intent

As amended, HB 3754 is intended to restrict when and how health care providers may refer patient medical bills to outside collection agencies or law firms. The amendment creates notification and timing requirements designed to give patients time to pay or arrange repayment before a referral to collections, and it makes violations an unlawful practice under the Illinois Consumer Fraud and Deceptive Business Practices Act.

Note: The original (introduced) version would have added an insurer‑focused section to the Illinois Insurance Code (allowing a limited fee for balance statements and imposing procedures before insurers turn accounts over to collections). House Amendment No. 1 replaces that text entirely with a Consumer Fraud Act provision focused on health care providers.

Key provisions (as amended)

  • Adds Section 2HHHH to the Consumer Fraud and Deceptive Business Practices Act.
  • Definitions:
    • "Collection action": any referral of a bill to a collection agency or law firm to collect payment from a patient or the patient’s guarantor for health care services.
    • "Health care provider": defined by reference to the Medical Patient Rights Act.
  • Pre‑collection notice and timing requirements:
    • A health care provider may not initiate a collection action unless the patient (or guarantor) has been notified by first‑class mail at least 15 days before the referral takes effect.
    • That notice must be sent no earlier than 30 days after the date of the initial bill.
    • The notice must inform the patient/guarantor of outstanding payment obligations and, if applicable, the right/ability to request a repayment plan.
    • If the patient pays or arranges repayment with the provider, no collection action may be taken.
  • Enforcement:
    • A health care provider violating this section commits an unlawful practice under the Consumer Fraud Act.
  • Savings clause:
    • The section does not supersede or conflict with the Fair Patient Billing Act.

Who is affected

  • Primary: Health care providers in Illinois that bill patients (hospitals, clinics, physicians, other providers).
  • Secondary: Patients and patient guarantors who owe money for health care services; collection agencies and law firms receiving referrals.
  • Legal/regulatory: Enforcement via Consumer Fraud Act mechanisms (state AG and private remedies under that Act).

Procedural/timeline notes

  • Under the amendment’s timing rules, the earliest a provider could refer a bill to collections would typically be about 45 days after the initial bill (send notice no earlier than 30 days after bill, then provide at least 15 days’ notice before referral).
  • The bill progressed through the Insurance Committee (Do Pass, 03/20/2025) and was subject to House Floor Amendment No. 1 (04/08/2025), which is pending in Rules Committee (Rule 19(c) re‑referral).

Potential impacts (practical considerations)

  • Patients: additional time and a clearer opportunity to request payment plans or resolve disputes before referral to collections.
  • Providers: adds administrative steps and minimum waiting periods before referral; could affect revenue‑cycle timing and increase need to offer or negotiate repayment plans.
  • Collectors: may see fewer rapid referrals; must receive referrals that have met the statutory timing and notice requirements.
  • Legal: creates a private‑enforceable unlawful practice under the Consumer Fraud Act; overlaps with but does not supplant existing patient billing laws (Fair Patient Billing Act, Medical Patient Rights Act).

If you want, I can produce a side‑by‑side comparison of the introduced text versus House Amendment No. 1 or draft potential fiscal or operational impacts for providers.

Compiled from official sources — confirm details with the bill’s official record.

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