Oregon has its own set of laws that govern debt collection practices in addition to federal laws like the HIPAA and Fair Debt Collection Practices Act (FDCPA). Debt collectors are required to be licensed in the state of Oregon. Debt collectors in Oregon must provide a written notice, including the amount of the debt, the name of the creditor, and an explanation that the consumer has 30 days to dispute the debt.
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If a creditor has successfully sued and obtained a judgment against a debtor, Oregon law limits how much of a debtor’s wages can be garnished. The limit is generally 25% of disposable earnings or the amount by which a debtor’s weekly income exceeds 40 times the minimum wage, whichever is less. Certain types of income are exempt from garnishment, like Social Security, retirement benefits, and public assistance.
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In Oregon, there is a statute of limitations on how long a creditor has to sue a debtor to collect a debt. The statute of limitations for written contracts (like credit card agreements) is six years; for oral contracts, it’s six years. This starts from the date of the last activity or payment.
The Current State of Medical Debt in Oregon
The last thing you want to be worried about during an unexpected illness or injury is the cost of your medical bills. For those with steady jobs and good health insurance, typically, this is not a major problem. However, all too often, people have to pay thousands of dollars, drowning them in debt.
This is a very common issue for patients, but it also affects Oregon health professionals. Their focus is to treat their patients as effectively as possible, but doctors are often put in a sticky spot if their patients are not up to date on their medical bills. This is an issue throughout the United States, but in Oregon, lawmakers are taking steps to ease the strain of medical debt on patients. This is how they’re making a change and what it means for medical professionals in Oregon.
What Are the Current Rules for Collecting Medical Debt in Oregon?
As of right now, federal law prohibits debt collectors from harassing people. This means they are not allowed to contact people before 8 AM or after 9 PM. However, this law was passed in 1977, and technology has opened up a whole new world of ways to contact people. Current federal laws are being discussed to update these rules to accommodate the new technological advances. With the discussion sparked by Washington D.C., some states are taking steps to address medical debt specifically.
Oregon has a bill being discussed that would cap the amount of interest that can be charged on medical debt and requires hospitals to screen patients and let them know if they are eligible for financial assistance and insurance. This bill also requires non-profit hospitals and affiliated clinics to provide care for free for families with incomes of up to 200% of the poverty level and charge a lower amount for families earning up to 400% of the poverty level. This assistance would open doors for lower-income families that would keep people from going into debt or filing for bankruptcy due to their medical bills.
How Can Oregon Medical Professionals and Hospitals Handle Medical Debt?
All of this is incredibly promising for residents of Oregon. However, medical professionals will still have to handle medical debt for their patients in a way that preserves the trust and respect their patients expect from doctors. There are a few different ways medical professionals can do this:
- You can discuss options for financial assistance and let your patients know what resources they might be eligible for to help with their debt.
- You can let them know that there are payment plan options that will help them pay down their debt in manageable increments.
- You can walk them through their bill so they understand all the charges.
By offering assistance to those who need it and being willing to discuss the charges in a way that your patient can understand, you’ll be able to address the issue of medical debt without costing you your rapport with your patients.