Consumer Protection for Medical Debt Collections Act

This bill, HR 1773 (Consumer Protection for Medical Debt Collections Act), protects consumers with medical debt by limiting how debt collectors and credit bureaus handle such debts. It prohibits collectors from attempting to collect medical debt for two years after the first payment is due, delays credit bureaus from reporting medical debt for 365 days after it’s placed for collection, and permanently removes medical debt from credit reports if it relates to a medically necessary procedure (like preventive care or treatment for an illness). Healthcare providers must send consumers specific notices before reporting medical debt, including details about the 365-day reporting delay and options for financial assistance. The law directly affects consumers with medical debt, healthcare providers, and credit reporting agencies, focusing on concrete changes to debt collection and credit reporting practices.