Two bills that would have impacted how medical debt collections in South Dakota are off the table for this legislative session as both South Dakota HB 1058 and HB 1210 were stopped.
South Dakota HB 1058 would have prohibited creditors or debt collectors from reporting medical debt to consumer reporting agencies (CRAs). Violations would have been classified as a Class 2 misdemeanor. South Dakota HB 1058 was introduced in mid-January and was referred to the House Health and Human Services Committee, where it passed. Shortly after it was presented for a full House vote where it failed and will no longer be considered during the current legislative session.
South Dakota HB 1210, would have prohibited hospitals from reporting medical debt for collection in certain situations. Some of the conditions include:
- If the patient is awaiting an insurance appeal.
- If the patient has not been evaluated by the hospital for financial assistance eligibility.
- If the hospital failed to provide an itemized statement before sending the debt to collections.
- If the patient is actively negotiating or making payments under an agreed upon plan.
The bill was tabled to the 41st legislative day. This essentially kills the bill as there are no more than 40 days in any legislative session in the state.
South Dakota HB 1058 and HB 1210 are out for this legislative session, but Americollect will continue to monitor these bills for activity in the next session, and any other bills that may arise in South Dakota.
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