HB 26-1267

House Bill 26-1267 in Colorado aims to protect patients from aggressive medical debt collection practices. It requires medical creditors to notify patients 30 days before taking any collection actions, selling the debt, or transferring it to another party, and ensures that patients are screened for public health insurance programs and discounted care options. The bill also mandates that medical creditors offer reasonable payment plans to those with medical debts. If a creditor violates these rules, patients can receive damages of at least $3,000 or actual damages suffered. This bill has been signed into law, meaning its protections are now in effect for Colorado residents dealing with medical debt.

Official Summary

The bill adds to the list of impermissible collection actions that a medical creditor is prohibited from using when collecting on a medical debt. Current law requires a medical creditor to comply with certain conditions and notify a patient with medical debt 30 days before taking any permissible extraordinary collection actions. In addition to providing notice before taking any permissible extraordinary collection actions, the bill requires a medical creditor to notify a patient 30 days before collecting, transferring, selling, or assigning a medical debt, and to verify the patient has been screened for public health insurance programs and discounted care. The bill requires a medical creditor to offer a reasonable payment plan to each patient with medical debt. If the medical creditor violates the requirements for selling, transferring, or assigning medical debt, or undertaking collection activities, the patient is entitled to damages in the amount of $3,000 or actual damages, whichever is greater.(Note: This summary applies to this bill as introduced.)

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