A bill has been introduced in the New Jersey legislature that would require healthcare facilities to wait until at least 90 days after a patient has been first billed for services and require those facilities to provide specific repayment options before placing the account with a collection agency.
A copy of the bill, which was introduced by Joann Downey, a member of the New Jersey state Assembly, can be accessed by clicking here.
Along with being forced to wait 90 days before placing the account with a collection agency, healthcare facilities would also be required to offer patients an income-based repayment plan, in which the monthly payments do not exceed 15% of the patient’s total monthly discretionary income. Patients would be required to submit the appropriate documentation to verify their income to determine the monthly payment amount. As long as the patient is complying with the terms of the repayment plan, the facility would be prohibited from placing the account with a collection agency. Compliance is defined as making 11 payments during a 12-month period.
In the event a patient dies or becomes permanently disabled, the facility would be required to discharge the debt and no longer seek repayment. Healthcare facilities would also be required to temporarily suspend collection efforts if a patient becomes temporarily disabled, until such time as the patient recovers.
The bill applies to healthcare facilities, which are defined as general acute care hospitals, nursing homes, long-term care facilities, hospice care facilities, or rehabilitation centers, and healthcare professionals, defined as “any person licensed or certified pursuant to Title 45 of the Revised Statutes to provide health care services.”
