AB204

Existing law provides requirements governing the collection of medical debt by a collection agency, including a requirement to provide certain notice to a medical debtor before taking action to collect and prohibiting certain actions to collect a medical debt. (NRS 649.366, 649.368) Sections 14 and 19 of this bill prohibit a health care entity or collection agency from engaging in certain actions, or threatening to engage in certain actions, to collect a medical debt, including: (1) causing the arrest of a consumer; (2) obtaining a lien or foreclosing on real property of a consumer that includes the consumer's primary residence; (3) garnishing any refund of federal income taxes due to a consumer; or (4) garnishing, attaching or seizing the bank account of a consumer. Section 15 of this bill prohibits a health care entity or collection agency from engaging in extraordinary collection actions until at least 180 days after the first bill for a medical debt is sent to a consumer and requires a notice that includes certain information to be sent to the consumer at least 30 days before any extraordinary collection action is taken. Section 6 of this bill defines the term “extraordinary collection action” to mean: (1) selling a medical debt to a collection agency; (2) any action that requires a legal or judicial process except for placing a lien on third party settlements; (3) reporting, furnishing or threatening to report or furnish any information regarding a medical debt to a