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Financial Services Law Insights and Observations

Colorado reminds collection agencies about medical law

State Issues State Attorney General Colorado Medical Debt Debt Collection Licensing Consumer Finance

State Issues

On August 16, the Colorado attorney general published a memorandum reminding collection agency licensees and interested parties that HB21-1198 becomes effective September 1. HB21-1198, among other things, amends the Colorado Fair Debt Collection Practices Act to add a new unfair practice—attempting to collect a debt that violates certain HB21-1198 requirements. The bill also creates requirements for notice and certain limitations on collections of medical debt. Specifically, the bill enacts healthcare billing requirements for indigent patients who are treated, but not reimbursed, through the state’s indigent care program and sets forth requirements before any collection proceeding may be initiated against an indigent patient.