Nexa Collections

Changing Medical Credit Reporting Laws: Urgently Hire a Collection Agency!


One of the most effective tools in recovering unpaid medical bills has been credit bureau reporting. Patients fear that outstanding medical debts will tarnish their credit reports, reducing their chances of obtaining loans and potentially affecting employment opportunities. However, this window of opportunity is gradually closing as CFPB and states are gradually enact laws to stop or restrict credit bureau reporting of medical debts, making recovery efforts very challenging.

Act Now: Changing Laws Are Making Healthcare Debt Recovery More Challenging

Its all happening in front of us – Federal and state governments are rapidly eliminating the credit reporting of medical debts or imposing strict restrictions, making healthcare debt recovery increasingly difficult. The window to recover unpaid medical bills is closing fast.

What are you waiting for ?

  • If you have not collected your unpaid medical bills yet – Forward them to a medical collection agency fast!
  • Need a collection agency? Contact us 
  • Time is  running out !

Start the Collections Process Immediately

It’s imperative to initiate the collections process early, before patients begin to view their medical bills as a low priority, believing there will be no repercussions for not paying. Delaying action can result in missed opportunities to recover debts that are rightfully owed.

Credit Reporting Agencies Are Minimizing the Impact of Medical Debts

To make matters worse, credit reporting agencies like Equifax, TransUnion, and Experian, along with credit scoring models such as FICO and VantageScore, have already started to minimize the impact of medical bills on credit scores. This means unpaid medical debts may no longer significantly affect a patient’s creditworthiness, reducing their incentive to pay.

List of Laws Passed and Pending Approval 

  • Federal regulations like the “No Surprises Act” aim to protect consumers from unexpected medical bills, further complicating the debt recovery process for healthcare providers.
  • Jun, 2024 – CFPB Proposes to Ban Medical Bills from Credit Reports Entirely. ( All across USA)
  • Connecticut – May 9, 2024- Public Act No. 21-129 , Public Act No. 24-6
    Connecticut Governor Signs Bill Prohibiting Health Care Providers from Reporting Medical Debt to Credit Reporting Agencies.
  • Colorado – House Bill 21-1198, Colorado law prohibits credit bureaus from reporting medical debt or factoring medical debt into a credit score unless the consumer report is to be used in connection with a credit transaction that involves, or that may reasonably be expected to involve, a principal amount that exceeds the national conforming loan limit value for a one-unit property as determined by the federal housing finance authority.
  • New York – Senate Bill S4907A, SB 8373 , Fair Medical Debt Reporting Act, This law prohibits hospitals, health care professionals, and ambulance services from reporting medical debt to consumer reporting agencies.
  • Nevada – Senate Bill 248
  • Virginia – Bill, HB 1370 , HB 1265
  • California – Assembly Bill 1020 (AB 1020)
  • Maryland – Medical Debt Protection Act
  • Washington State – House Bill 1531 (HB 1531) , HB 2119
  • Minnesota – Minnesota Statutes Section 332.70
  • Illinois – House Bill 5482
  • Massachusetts – Senate Bill S.675
  • Oregon – House Bill 3076
  • Maine – Legislative Document 110 (LD 110) , SB 908
  • Texas – House Bill 1448
  • Florida – Florida reduces statute of limitations for medical debt to three years
  • New Jersey – AB 890
  • Virginia-  HB 1370
  • Wisconsin – AB 786
  • Rhode Island – HB 7103
  • Vermont – (SB 217)
  • Oklahoma – HB 3576, and HB 4148
  • Indiana – HB 1128
  • Equifax, Experian, and TransUnion:
    • Announced removal of paid medical collection debt from credit reports.
    • Extended the time before unpaid medical collection debt appears on credit reports from 6 months to 1 year.
    • Starting in 2023, medical collection debt under $500 is no longer included on credit reports.

Be First in Line Before Patient Finances Deteriorate

Medical collections should be a top priority because patients’ finances can deteriorate very quickly; they might accrue additional bills from other healthcare providers. You want to be first in line to secure payment before funds are depleted elsewhere. We strongly recommend sending accounts to a collection agency after 60 to 90 days of non-payment, even though medical credit reporting can now occur after one year due to stringent new laws.

Choose a Reputable Healthcare Collection Agency

When hiring a healthcare collection agency, you must select one that will not tarnish your reputation during collections. Ensure the agency:

  • Follows all federal and state laws
  • Is licensed to collect in all 50 states
  • Keeps patients’ data safe and is HIPAA compliant
  • Offers bilingual services
  • Serves hundreds of healthcare clients
  • Has a track record of delivering excellent recovery rates

Don’t Wait Until It’s Too Late

The landscape of medical debt recovery is changing rapidly. Act now to protect your revenue and maintain the financial health of your practice. Initiate the collections process promptly to navigate these challenges effectively.