Michigan is closer to joining a growing number of states that have enacted healthcare price transparency policies with the introduction of Michigan SB 95. Michigan SB 95 would prohibit hospitals from collecting on medical debt if the facility did not comply with federal price transparency laws at the time of service.
If Michigan SB 95 were to pass, a hospital that was not in compliance with hospital price transparency laws on the date of service would not be able to initiate or pursue collection actions against the patient for a debt owed. The bill would apply to critical access hospitals. If the bill passes and a patient has evidence that a hospital was not in compliance with hospital transparency laws and the hospital took collection action against the patient for the services provided, the patient would be able to file a civil action to determine if the hospital was out of compliance on the date of service. The hospital would also be unable to take collective action against the patient while the civil action is pending. If found guilty, the hospital would have to do the following:
- Refund the payer any amount of the debt already paid and pay a penalty to the patient of an amount equal to the total amount of the debt.
- Dismiss or move to dismiss with prejudice any court action based on the debt and pay any attorney fees and costs incurred by the patient relating to the action.
- Remove any report made to a consumer reporting agency relating to the debt.
Michigan SB 95 was introduced in late February and overwhelmingly passed through the Michigan Senate. It is currently referred to the House Committee on Health Policy. Americollect will continue to follow this bill as it makes its way through the Michigan House.
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