A medical debt collection bill has been introduced in the Washington legislature that aims to enhance consumer protections and significantly reshape how medical debt can be collected, reported, and enforced across the state. House Bill 1632 would amend multiple sections of Washington law to restrict credit reporting of medical debt and impose new compliance obligations on healthcare providers, collection agencies, and debt buyers.
At a high level, the bill seeks to eliminate medical debt from consumer credit reports entirely in Washington. If enacted, consumer reporting agencies would be prohibited from including medical debt in consumer reports, regardless of age or balance. In addition, hospitals, physician groups, healthcare facilities, and licensed collection agencies would be barred from furnishing information about medical debt to credit reporting agencies. Violations would carry steep consequences, as any medical debt reported in violation of the statute would be deemed void and unenforceable.
The legislation goes further by targeting the underlying contracts that create medical debt. Contracts entered into on or after the bill’s effective date would be required to include explicit language stating that the debt may not be reported to consumer reporting agencies. Any contract that fails to include this language would also be void and unenforceable. Lawmakers explicitly tie these provisions to Washington’s Consumer Protection Act, characterizing violations as unfair or deceptive acts in trade or commerce.
For collection agencies and debt buyers, the bill reinforces and expands existing medical debt specific rules. Collectors would continue to be required to provide detailed itemization upon request and pause collection activity until that information is supplied. The bill also removes prior allowances related to delayed credit reporting timelines by flatly prohibiting adverse credit reporting for medical debt altogether. These changes increase the operational and legal risk associated with pursuing medical accounts in Washington without strict adherence to revised procedures.
Hospitals and healthcare providers would face new disclosure and compliance requirements as well. Providers would be required to furnish written statements to patients explaining that medical debt cannot be reported to credit bureaus and that violations render the debt unenforceable. Reporting medical debt in violation of the law would also constitute a licensing violation for providers, adding another layer of regulatory exposure.
