§ 56:11-57 — Definitions.

2. As used in P.L.2024, c.48 (C.56:11-56 et seq.): "Collection action" means any action on the part of a medical creditor with respect to a medical debt, and includes, but is not limited to: selling a patient's debt to another party; reporting information about the patient to a consumer reporting agency; or actions related to the collection of a patient's debt to another party that require a legal or judicial process, including, but not limited to, placing a lien on a patient's property, attaching or seizing a patient's bank account or any other personal property, commencing a civil action against a patient, or garnishing a patient's wages. "Collection action" shall not include: reasonable attempts by a medical creditor to send an invoice or bill to a patient or reminders to pay an invoice or bill; or collecting a copayment, coinsurance, deductible, or payment from the patient at the point of service. "Consumer reporting agency" means any person or entity which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties and which uses any means or facility for the purpose of preparing or furnishing consumer reports. "Cosmetic medical procedure" means any medical procedure performed on a patient that is primarily directed at improving the procedure subject's appearance and that does not meaningfully promote the proper function of the body or prevent or treat illness or disease and any other cosmetic procedure or service not deemed to be medically necessary, as that term is defined pursuant to section 4 of P.L.2023, c.296 (C.17B:30-55.3). "Cosmetic medical procedure" does not include reconstructive surgery or dentistry. "Health care facility" means health care facility as defined in section 2 of P.L.1971, c.136 (C.26:2H-2). "Health care provider" means a person or entity which, acting within the scope of its licensure or certification, provides a health care service. Health care provider includes, but is not limited to, a physician, dentist, and other health care professionals licensed pursuant to Title 45 of the Revised Statutes and a hospital and other health care facilities licensed pursuant to Title 26 of the Revised Statutes. "Health care service" means the preadmission, outpatient, inpatient, and post-discharge care provided by a health care facility or a health care provider and such other items or services as are necessary for such care, including, but not limited to, medical devices, which are provided for the purpose of health maintenance, diagnosis, or treatment of human disease, pain, injury, disability, deformity, or physical condition, including, but not limited to, nursing service, home care nursing, and other paramedical service, ambulance and other medical transport services, dental and vision services, service provided by an intern, resident in training, or physician whose compensation is provided through agreement with a health care facility, laboratory service, medical social service, drugs, biologicals, supplies, appliances, equipment, and bed and board, including services provided by a health care professional in private practice. "Health care service" shall not include cosmetic medical procedures. "Medical creditor" means any person or entity that provides health care services and to whom a patient owes money for health care services or the entity that provided health care services and to whom the patient previously owed money if the medical debt has been purchased by one or more debt buyers. "Medical debt" means a debt arising from the receipt of health care services. "Medical debt" shall not include: debt charged to a credit card unless the credit card is issued under an open-end or closed-end credit plan offered solely for the payment of health care services or goods; debt arising from services provided by a veterinarian; debt charged to a home equity or general purpose line of credit; debt arising from an insurance payment for the health care provider's services, but retained by the subscriber; or secured debt. "Medical debt buyer" means a person or entity that is engaged in the business of purchasing medical debts for collection purposes, whether it collects the debt itself or hires a third-party billing entity for collection or an attorney-at-law for litigation in order to collect such debt. "Medical debt collector" means any person or entity that regularly collects or attempts to collect, directly or indirectly, medical debts originally owed, due, or asserted to be owed or due to another. A medical debt buyer is considered to be a medical debt collector for all purposes. "Patient" means the person who received health care services and, for the purposes of P.L.2024, c.48 (C.56:11-56 et seq.), includes a parent or legal guardian if the patient is a minor, a legal guardian if the patient is an adult under guardianship, or any other person liable or allegedly liable for any financial obligation incurred for health care services. "Personal property" means real property and movable property not affixed to land, and includes, but is not limited to, bank accounts, motor vehicles, goods, merchandise, and household items. "Reasonable payment plan" means a structured repayment arrangement that satisfies the following: monthly payment amounts shall be set at a level that the patient can reasonably afford or not more than three percent of the patient's monthly income, if known by the medical creditor or medical debt collector; the duration shall allow the patient to repay the debt in full within a reasonable timeframe, which shall include, but not be limited to, a timeframe that is between six months and five years in length, based on the total amount owed and the patient's financial capacity; the plan shall include provisions for adjusting the payment amounts and duration in response to significant changes in the patient's financial circumstances; the terms of the payment plan shall be clearly documented in a written agreement provided to the patient, including the total amount owed, the monthly payment amount, the payment schedule, and any interest; the plan shall provide a grace period of at least 60 days for late payments; and the plan shall not charge an interest rate on a medical debt of more than three percent per annum. "Third party billing entity" means a person or entity that is paid by a health care provider or medical debt buyer to process claims or claims payments on behalf of the health care provider. L.2024, c.48, s.2.