State Medical Debt Laws Take Effect

California and Illinois recently enacted medical debt credit reporting laws, with more legislation expected to be introduced in 2025. ACA has compliance resources to help members navigate these laws.

Medical debt credit reporting is expected to be an ongoing legislative issue in the states following suit of California, Illinois, New Jersey, Minnesota, Florida and Virginia, among other states.

ACA International’s state advocacy team and state units will also continue to focus on this issue as state legislative sessions for 2025 are already underway.

Medical debt credit reporting laws in California and Illinois took effect on Jan. 1.

In Rhode Island, hospitals and medical providers are prohibited from reporting medical debt to credit reporting agencies effective Jan. 1. Debt collection contracts must also prevent such reporting.

ACA SearchPoint #1255: State Credit Reporting Laws (PDF) was recently updated with California’s requirements, among other states.

The California legislature approved Senate Bill 1061 last year with several amendments and a definition of medical debt that aligns with the Consumer Financial Protection Bureau’s pending final rule on medical debt credit reporting under the federal Fair Credit Reporting Act, ACA previously reported.

In Illinois, issues tracked by the Great Lakes Credit and Collection Association (GLCCA) during the legislative process included defining medical debt in the state’s final law, SB 2933, and ensuring it does not include expenses charged to a credit card.

Similar advocacy by the GLCCA occurred in Minnesota, which finalized the Minnesota Debt Fairness Act in 2024, ACA previously reported. The law took effect Oct. 1, 2024.

Learn More About State Laws

For more information on laws related to medical debt credit reporting, ACA members can get valuable updates on changes to state laws and compliance requirements by subscribing to ACA’s State Guide Cohort and joining the monthly webinar series.