Only a couple of short weeks ago, the Comprehensive Debt Collection Improvement Act (CDCIA H.R. 2547) was introduced by Representative Maxine Waters (D-CA). This bill aims to reform debt collection practices to soften the impact of the COVID-19 on consumers. While well-intended, parts of the bill’s reach could have serious consequences to creditors, specifically to healthcare providers.
The bill seeks to amend Section 808, Unfair Practices, of the Fair Debt Collections Practices Act, by adding the following language to section 202(b):
(10) Engaging in activities to collect or attempting to collect a medical debt owed or due or asserted to be owed or due by a consumer, before the end of the 2-year period beginning on the date that the first payment with respect to such medical debt is due.”
If passed the bill would prohibit healthcare providers from sending medical debt to collections for TWO YEARS, putting an unnecessary burden on health systems nationwide and curtailing revenue.
The bill has already been passed by a 215-207 vote in the House of Representatives and is now on the way to the Senate— but it’s not too late. The bill will need a simple 51/100 vote majority to pass in the Senate before it will return to committee, and then eventually recirculate for final approval in Congress before it hits the President’s desk.
You can help to stop it before it reaches the President’s desk. Contact your representatives and tell them to VOTE NO on CDCIA H.R. 2547.
Follow this link to send a letter to your representatives.
Read more about CDCIA H.R. 2547 here.