The bill with possibly the best name ever placed on a piece of legislation cleared a small hurdle yesterday as it makes another attempt at becoming law in North Carolina. The state’s Senate Health Care Committee yesterday held a hearing and subsequently passed the Medial Debt De-Weaponization Act, becoming the first of four Senate committees that must approve the legislation. A companion bill has been introduced in the state House of Representatives.
A copy of the Senate bill can be accessed by clicking here. A copy of the House bill can be accessed by clicking here.
If enacted — it’s backed by state lawmakers as well as the state’s Treasurer, who has aspirations of running for governor next year — the bill would make North Carolina the second-most protective state of its residents with respect to medical debt.
Among the provisions of the bill are:
- Requiring buyers of medical debt to agree to certain provisions before a sale can be executed.
- Prohibiting taking any extraordinary collection action for 180 days after the first bill has been sent and requiring that consumers receive 30-day notice prior to any extraordinary collection action being taken.
- Collectors would only be allowed to engage in collection activities that are part of the healthcare facility’s billing and collection policy.
- Require collectors to provide an itemized bill if requested orally or in writing
- Requiring collectors to wait one year before reporting any unpaid medical debts to the credit reporting agencies
- Prohibiting the collection of medical debts if the consumer is appealing health insurance decisions
- Limit the interest rate that can be charged on unpaid medical debts to 5%.
“We’re asking you to support being on the right side of history,” said state Treasured Dale Folwell during yesterday’s hearing, according to a published report
