In July of 2024, Illinois Governor JB Pritzker signed a pair of bills that will impact medical debt in Illinois. HB5290 creates the Medical Debt Relief Act, while SB2933 makes medical debt ineligible to be included on a credit report.
Illinois Medical Debt Impact from HB5290
HB5290, the Illinois medical debt forgiveness bill, instructs the state to invest about $10 million in state funding to purchase medical debt. The Department of Healthcare and Family Services is to establish a Medical Debt Relief Pilot program to discharge Illinois medical debt of eligible residents by January 1st, 2025.
According to news reports, Illinois is partnering with Undue Medical Debt – formerly RIP Medical Debt – for the program.
Illinois Medical Debt Impact from SB2933
The Governor also signed Illinois SB2933 into law, which affects Illinois medical debt by amending the Consumer Fraud and Deceptive Business Act to prohibit credit agencies from including negative information about medical debt in credit reports. It makes this unlawful for a consumer reporting agency: 1) to 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 again against the consumer to collect medical debt; and 2) to maintain in the file on a consumer any information relating to medical debt incurred by a consumer or a collection action against the consumer to collect medical debt. The definition of medical debt does not include debt charged to a credit card, nor does it include an open-end or closed-end extension of credit made by a financial institution to a borrower unless the open-end or closed-end extension or credit may be used by the borrower solely for the purpose of healthcare services. This bill will go into immediate effect.
Conclusion
Illinois is joining the ever-growing list of states eliminating medical debt from consumer credit reports. Americollect is working to keep you informed when changes like these happen. If you would like to learn how Americollect can assist your facility, contact us by clicking the button below!
Ridiculously Nice Legal Disclaimer
The content provided in this communication (“Content”) is presented for educational and general reference purposes only. Americollect, Inc and/or AmeriEBO LLC either directly or indirectly through speakers, independent contractors, or employees (collectively referred to as “Americollect”) is providing this Content as a courtesy to be used for informational purposes only. The Contents are not intended to serve as legal or other advice. Americollect does not represent or warrant that the Content is accurate, complete, or current for any specific or particular purpose or application. This information is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel. By using the Content in any way, whether or not authorized, the user assumes all risk and hereby releases Americollect from any liability associated with the Content.