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Bill

LB 779

Provide requirements for health care facilities and collection agencies relating to medical debt

109th Legislature (2025-2026) Introduced by John Cavanaugh and 2 co-sponsors

LB 779 imposes regulations on Nebraska health care facilities and collection agencies to establish medical debt handling standards and patient protections.

Raybould name added
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Bill Summary · LB 779

Legislative bill overview

LB 779 establishes regulations for how health care facilities and collection agencies handle medical debt in Nebraska. The bill creates requirements governing debt collection practices, facility billing procedures, and protections for patients facing medical debt situations.

Why is this important

Medical debt is a leading cause of personal bankruptcy and financial hardship for American families, often arising from unexpected health events or inadequate insurance coverage. Establishing clear standards for debt collection practices and facility billing can protect vulnerable patients from aggressive collection tactics while clarifying obligations for both healthcare providers and debt collectors.

Potential points of contention

  • Impact on debt collection industry: Collection agencies may argue that new requirements increase operational costs and reduce their ability to recover debts, potentially affecting their business model
  • Healthcare facility compliance costs: Hospitals and clinics could face expenses implementing new billing procedures, documentation requirements, or administrative systems to meet the bill's standards
  • Scope of protections: Disagreement may exist over which patient populations receive protections, what debt collection practices should be prohibited or restricted, and whether requirements adequately balance patient rights against legitimate collection needs

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

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