(1) Beginning June
1, 2022, impermissible extraordinary collection actions may not be used by any
medical creditor to collect debts owed for hospital services.
(2) Beginning June 1, 2022, no medical creditor collecting on a debt for
hospital services shall engage in any permissible extraordinary collection actions
until one hundred eighty-two days after the date the patient receives hospital
services.
(3) (a) Beginning September 1, 2022, at least thirty days before taking any
permissible extraordinary collection action, a medical creditor, as defined in section
6-20-201 (6)(a), collecting on a debt for hospital services shall notify the patient of
potential collection actions and shall include with the notice a statement developed
by the department of health care policy and financing that explains the availability
of discounted care for qualified individuals and how to apply for such care.
(b) (I) A medical creditor, as defined in section 6-20-201 (6)(b), (6)(c), or (6)(d),
collecting on a debt for hospital services shall include the following statement in
the notices the medical creditor provides to the patient pursuant to section 5-16-109 (1) and 15 U.S.C. sec. 1692g (a): Pursuant to Colorado law, discounts for
hospital services are available for qualified individuals. The statement must
include a link to the written explanation of the patient's rights that is posted to the
department of health care policy and financing's website pursuant to section 25.5-3-505 (5)(a).
(II) A medical creditor, as defined section 6-20-201 (6)(b), (6)(c), or (6)(d),
shall not take any permissible extraordinary collection actions until the later of
thirty days from the date of sending the notice required pursuant to subsection
(3)(b)(I) of this section or the completion of the validation requirements described in
section 5-16-109 (2) and 15 U.S.C. sec. 1692g (b).
(4) Beginning September 1, 2022, if a medical creditor collecting on a debt
for hospital services bills or initiates collection activities and it is later determined
that the patient should have been screened pursuant to section 25.5-3-503 and is
determined to be a qualified patient, as defined in section 25.5-3-501 (5), or it is
determined that the patient's bill is eligible for reimbursement through a public
health-care coverage program, the medical creditor shall:
(a) Delete any negative reports to consumer reporting agencies;
(b) (I) Unless prohibited by law, if the court has entered a judgment on the
medical debt:
(A) Request the court vacate the judgment in any collection lawsuit over the
medical debt and enter into a payment plan with the patient that meets the
requirements of section 25.5-3-503 (1)(b); or
(B) Request the court reduce the amount of the judgment, including any fees
and costs related to the collection lawsuit, to the total amount the patient owes
pursuant to the public health-care coverage program or discounted care policy that
the patient qualifies for, enter into a payment plan with the patient that meets the
requirements of section 25.5-3-503 (1)(b), and suspend all execution on the
judgment while the patient is compliant with the terms of the payment plan; or
(C) File a satisfaction of judgment such that the remaining unpaid balance of
the judgment, including any fees and costs related to the collection lawsuit, is
equal to the total amount the patient owes under the public health-care coverage
program or discounted care policy that the patient qualifies for, enter into a
payment plan with the patient that meets the requirements of section 25.5-3-503
(1)(b), and suspend all execution on the judgment while the patient is compliant with
the terms of the payment plan.
(II) For the purposes of subsections (4)(b)(I)(B) and (4)(b)(I)(C) of this section,
the court shall refund to the parties any fees and costs paid to the court in
connection with the litigation of the medical debt and the health-care provider shall
indemnify the medical creditor for any fees awarded as part of the judgment in
connection with the medical debt.
(c) As the term medical creditor is defined in section 6-20-201 (6)(a), refund
any excess amount to the patient if the patient has paid any part of the medical
debt or if any of the patient's money has been seized or levied in excess of the
amount that the patient owes after application of required discounts;
(d) As the term medical creditor is defined in sections 6-20-201 (6)(b),
(6)(c), and (6)(d), if the patient has paid any part of the medical debt or if any of the
patient's money has been seized or levied in excess of the amount that the patient
owes after application of required discounts, refund any excess amount to the
patient to the extent the medical creditor has not already remitted such an amount
to the health-care provider; and
(e) Remedy any other permissible extraordinary collection action.
(5) Beginning September 1, 2022, a medical creditor collecting on a debt for
hospital services shall not sell a medical debt to another party unless, prior to the
sale, the medical debt seller has entered into a legally binding written agreement
with the medical debt buyer of the debt pursuant to which:
(a) The medical debt buyer agrees not to pursue impermissible extraordinary
collection actions to obtain payment for the care;
(b) The debt is returnable to or recallable by the medical debt seller upon a
determination that the patient should have been screened pursuant to section 25.5-3-502 and is eligible for discounted care pursuant to section 25.5-3-503 or that the
bill underlying the medical debt is eligible for reimbursement through a public
health-care coverage program; and
(c) If it is determined that the patient should have been screened pursuant to
section 25.5-3-502 and is eligible for discounted care pursuant to section 25.5-3-503 or that the bill underlying the medical debt is eligible for reimbursement
through a public health-care coverage program and the debt is not returned to or
recalled by the medical debt seller, the medical debt buyer shall adhere to
procedures that must be specified in the agreement that ensures the patient will
not pay, and has no obligation to pay, the medical debt buyer and the medical
creditor together more than the patient is personally responsible for paying.
(6) The medical debt seller shall indemnify the medical debt buyer for any
amount paid for a debt that is returned to or recalled by the medical debt seller.
(7) Nothing in this section limits or affects a health-care provider's right to
pursue against any party other than the patient the collection of personal injury,
liability, uninsured, underinsured, medical payment rehabilitation, disability,
homeowner's, business owner's, workers' compensation, fault-based insurance,
subrogated claims, or other claims not against the patient.