HB566:

Public hospitals; medical debt collection practices.

Bill Summary:

Public hospitals; medical debt collection practices.
Requires the University of Virginia Medical Center (the Medical Center) and the
Virginia Commonwealth University Health System Authority (the Authority) to make
payment plans available to each person who incurs a debt related to medical
treatment. The bill (i) requires that such payment
plans be provided in writing and cap monthly
payments at no more than five percent of the person's household income, (ii) provides that the first payment under such payment
plan shall not be due until a date that is at least 90 days after the date on
which treatment was provided or the date on which
the person discharged, and (iii) provides that a
person who has made at least 10 payments pursuant to
the payment plan in a 12-month period shall be
deemed to be in compliance with the payment plan. The bill also prohibits the
Medical Center and the Authority from charging interest or late fees for
medical debt, requires the Medical Center and Authority to make information
available in writing in languages other than English spoken in the service area
and via oral translation service for other languages, prohibits the Medical
Center and the Authority from selling medical debt to any person other than an
organization that purchases medical debt for the purpose of paying such debt in
full, prohibits the Medical Center and the Authority from initiating any
extraordinary debt collection action including garnishment of wages or liens on
a debtor's primary residence or vehicle, and
requires the Medical Center and the Authority to establish
a Financial Assistance Ombudsman Office to
assist patients and other persons with issues related to financial assistance,
payment plans, and debt collection.