Colorado HB 21-1198
What is it?
Effective June 1, 2022, Colorado’s HB 21-1198 increases the responsibilities of facilities to screen for discounted care before placing an account for collections. This change applies to facilities licensed under a hospital license and providers that work in that facility, including but not limited to:
What does it mean for healthcare facilities?
Colorado HB 21-1198 requires facilities to send a notice at least 30 days before placing an account with a collection agency. This notice will have some state-specific language that has not yet been released. In addition, patients will also need to be screened for discounted care unless the provider has affirmative proof that the patient has opted out of this screening. The screening must be completed before a bill can be placed with a collection agency.
Because this bill goes into effect on 6/1/2022, the provider will have to be compliant beforehand. Any account placed with a collection agency after 6/1/2022 will have to have the:
- the 30-day notice
- the provider screening requirements completed
What does it mean for your collection agency?
Colorado HB 21-1198 states that collection agencies cannot be filed on medical accounts until 182 days after the date of service. CollectionCenter, inc. is already compliant with this requirement.
Collection agencies can no longer pursue foreclosure actions to enforce a judgment on medical debt. CollectionCenter, Inc. does not take this action.
If an account is placed with a collection agency and is later found to qualify for discounted care, the agency must:
- Delete any credit reporting
- Refund any monies paid above the discounted liability
- Vacate any judgments
- Any other remedies that may be necessary under the taken collection activity
CollectionCenter, Inc. is and will continue to be compliant with these requirements.