SB3298 103RD GENERAL ASSEMBLY

LRB103 37026 SPS 67141 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3298

Introduced 2/7/2024, by Sen. Mike Simmons

SYNOPSIS AS INTRODUCED:

815 ILCS 505/2EEEE new

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person shall not report to a consumer reporting agency any medical debt incurred by a consumer or any collection action against the consumer to collect medical debt. Provides that a consumer reporting agency shall not make, create, or furnish any consumer report or credit report containing, incorporating, or reflecting any adverse information that the consumer reporting agency knows or should know relates to medical debt incurred by the consumer or a collection action against the consumer to collect medical debt. Provides that no consumer reporting agency shall maintain in the file of a consumer any information relating to medical debt incurred by a consumer or a collection action against the consumer to collect medical debt. Provides that a health care provider shall not furnish or report any medical debt incurred by a consumer or any collection action against the consumer to collect medical debt to a consumer reporting agency. Provides that a health care provider shall include a provision in any contract entered into with a collection agency for the purchase or collection of medical debt that prohibits the reporting of any medical debt to a consumer reporting agency. Provides that a violation of the provisions constitutes an unlawful practice within the meaning of the Act.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2EEEE as follows:

(815 ILCS 505/2EEEE new)

Sec. 2EEEE. Credit reporting; medical debt.

(a) As used in this Section:

"Collection action" means any referral of a bill to a collection agency or law firm to collect payment for services from a consumer for health care services.

"Collection agency" means any individual, partnership, corporation, trust, estate, co-operative, association, government or government subdivision, agency, or other entity that either purchases medical debt or collects medical debt on behalf of another entity.

"Consumer report" or "credit report" have the meaning ascribed to the term "consumer report" under 15 U.S.C. 1681a(d).

"Consumer reporting agency" has the meaning ascribed to that term in 15 U.S.C. 1681a(f).

"Health care provider" means a physician licensed to practice medicine in all of its branches, advanced practice registered nurse, physician assistant, hospital licensed under the Hospital Licensing Act, long-term care facility licensed under the Nursing Home Care Act, an ambulance service licensed to provide health care services in this State, or any other individual or entity licensed, registered, or certified to provide health care services in this State.

"Medical debt" means a debt arising from the receipt of health care services, products, or devices, health care professional, hospital, or an ambulance service that is licensed, authorized, or certified to provide health care services in this State

(b) A person shall not report to a consumer reporting agency any medical debt incurred by a consumer or any collection action against the consumer to collect medical debt.

(c) A consumer reporting agency shall not make, create, or furnish any consumer report or credit report containing, incorporating, or reflecting any adverse information that the consumer reporting agency knows or should know relates to medical debt incurred by the consumer or a collection action against the consumer to collect medical debt.

(d) No consumer reporting agency shall maintain in the file of a consumer any information relating to medical debt incurred by a consumer or a collection action against the consumer to collect medical debt.

(e) A health care provider shall not furnish or report any medical debt incurred by a consumer or any collection action against the consumer to collect medical debt to a consumer reporting agency. A health care provider shall include a provision in any contract entered into with a collection agency for the purchase or collection of medical debt that prohibits the reporting of the medical debt to a consumer reporting agency.

(f) A violation of this Section constitutes an unlawful practice within the meaning of this Act.