Florida Legislature Passes Medical Debt Reform with HB 7089

6/18/2024 Update:

Medical debt collection in Florida was impacted recently when HB 7089 was signed into law by Governor Ron DeSantis on May 10, 2024. Florida HB 7089 takes effect July 1, 2024. As previously reported by Americollect, the bill that was introduced in February quickly worked its way through the house and the senate, receiving unanimous votes.

Provisions

In addition to impacting medical debt collection, HB 7089 contains provisions that will impact healthcare service pricing, how estimates must be given and how patients are notified if their responsibility for care is higher under insurance than it is at a discounted self-pay rate.

Due to Florida HB 7089, hospitals and ambulatory centers are also prohibited from engaging in “extraordinary collection actions” (ECAs) against a patient until their eligibility for financial assistance is determined, and before providing an itemized bill and billing any applicable insurance coverage. The ECAs are also prohibited:

• During an ongoing grievance process.
• While a patient is compliant with a payment plan.
• For 30 days after notifying the patient in writing – by certified mail or other traceable delivery method – that a collection action will commence.
• While the individual negotiates in good faith the final amount of a bill for services rendered and complies with all terms of a payment plan.

HB 7089 counts ECAs as reporting adverse information to the credit bureaus, selling the debt, placing a lien or foreclosing on the individual’s property, seizing bank accounts or personal property, taking civil action or garnishing their wages.

Exemptions

There is also a new set of debt collection exemptions stated in HB 7089 that apply to a debt incurred as a result of medical services provided by hospitals, ambulatory surgical centers and urgent care centers. The bill increases the ceiling on debt collection exemptions for debt resulting from services provided in a hospital or ambulatory surgical facility to $10,000 interest in a single motor vehicle and to $10,000 interest in personal property, provided that a debtor does not claim a homestead exemption. This is different than the current law, where medical debt is subject to the uniform exemptions that apply to all types of debt.

Statute of Limitations

Finally, HB 7089 creates a three-year statute of limitations for any legal action related to medical debt garnered from services from hospitals, ambulatory surgical centers and urgent care centers, with the statute of limitations beginning on the date that the facility refers the debt to a third-party collection service.

Original article: 

In Florida, a bill is awaiting the governor’s signature that will significantly impact how healthcare providers are able to recover the funds they are owed. The bill, HB 7089, was introduced in late February and quickly worked its way through the house and senate, receiving the final unanimous yes vote within a short two weeks. If signed by the governor or is not vetoed, it would take effect on July 1, 2024.

Florida bill HB 7089 is aimed specifically at hospitals and ambulatory surgical centers (ASCs), and the measures they may take to recover their revenue. Some of the highlights include:

• Establishes a three-year statute of limitations for action to collect medical debt for services.
• Provides personal property exemptions from the legal process for medical debts.
• Requires licensed facilities to post a consumer-friendly list of standard charges on their website.
• Requires a licensed facility to provide an estimate to the patient and their insurance company.
• Requires a licensed facility to establish an internal grievance process for patients to dispute charges.
• Requires health insurers to provide insured with an advanced explanation of benefits for scheduled services.

After unanimously passing both the house and the senate, it is waiting for the governor to sign or veto HB 7089. If no action is taken, it will take effect July 1, 2024.

Being your Ridiculously Nice information source for industry news – we will monitor this legislature and provide updates on it as it becomes available. In the meantime, find out how Americollect can help your facility and reach out to our Ridiculously Nice Sales team!