SB 906

Abstract

Permits individual who has filed claim with insurer for benefits under insurance policy or brought action to seek compensation or damages for individual injury suffered as result of accident or crime to send written notice to health care provider to which individual owes debt for medical care or medical services stating that claim or action is pending. Prohibits health care provider that receives notice of pending claim or action from collecting, referring to debt collector or collection agency for collection, selling, assigning or otherwise transferring debt until 60 days after latest of specified dates. Permits health care provider to collect debt for which individual recovered partial proceeds from claim or action, up to limit of recovery. Tolls applicable statute of limitations on health care provider's right to collect debt during pendency of claim or action. Prohibits health care provider from reporting to credit reporting agencies that individual is delinquent, in arrears or otherwise unable or unwilling to pay debt during time in which claim or action is pending. Punishes violation as unlawful collection practice. Becomes operative 91 days after effective date of Act. Declares emergency, effective on passage.