Patient Debt Relief: New Hospital Rules and Protection Against Aggressive Collection
This Act establishes strict new standards for financial assistance and medical debt collection that hospitals participating in Medicare must follow. Citizens gain protection from aggressive collection tactics like home foreclosure or wage garnishment. Furthermore, a grant program is created to allow non-profit organizations to acquire and discharge medical debt for eligible individuals.
Key points
Hospitals are prohibited from placing liens on homes or garnishing wages to collect medical debt.
Low-income individuals (under 250% of the poverty line) are protected from interest charges and the sale of their debt to collectors.
A grant program will be established to allow non-profits to cancel medical debt for qualifying citizens.
Hospitals must offer repayment plans with minimum monthly payments (capped at 4% of gross income) before selling debt to a collector.
Status:
Expired
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