Earlier this year, Rep. Gabe Vasquez, a Democrat from New Mexico, introduced a bill in Congress that would, among other provisions, prohibit hospitals from sending unpaid medical debt accounts to collection agencies unless certain circumstances are met. While the bill hasn’t moved an inch in the six weeks since it’s been introduced, it’s what could happen months from now that may be of concern for the healthcare and accounts receivable management industries. During a meeting in Albuquerque last week to discuss the bill and the state of medical debt, Rep. Vasquez made a comment that if Democrats regain control of the House of Representatives, Rep. Frank Pallone [D-N.J.], currently the ranking member of the House Energy and Commerce Committee, would make passing Rep, Vasquez’s bill a “top priority,” according to a published report.
The full text of H.R. 9129, the Patient Debt Relief Act, is now available, and while he admits nothing much can be done between now and when the current Congressional session ends later this year, Rep. Vasquez did say he plans to reintroduce the bill in the next session, if he is reelected in November. Rep. Vasquez does have an edge over challenger Yvette Herrell, a former Republican member of Congress who is running to unseat Rep. Vasquez.
To get hospitals to comply with the provisions of his bill, Rep. Vasquez has tied compliance to eligibility requirements for Medicare funding. In order to be able to send unpaid debts to collection agencies, hospitals would:
- have to wait one year after payment for services was due
- make a payment plan available to consumers
- require collectors to agree to certain conditions, like not placing a lien on a consumer’s home or garnishing a consumer’s wages to collect on an unpaid debt
Rep. Vasquez used a state law in New Mexico that went into effect in 2021 as the foundation for his bill, and during the meeting last week, advocacy groups discussed how the state bill has been difficult to enforce.
This bill is one of a number of efforts at the state and federal level aimed at medical debt and its effects on consumers.
