California Bars Health Care Provider Organizations & Debt Collectors From Reporting Unpaid Medical Bills To Credit Bureaus

A new California law blocks health care provider organizations and debt collectors from reporting unpaid medical bills to credit bureaus. This makes California the eighth state to prevent reporting unpaid medical bills to credit bureaus. The legislation, California Senate Bill 1061 - Consumer Debt: Medical Debt, was signed on September 24, 2024. It went into effect on January 1, 2025.

This bill would require a health insurer to send notices, with specified information, to an insured and provider if the insurer sends payment directly to the insured and not to the provider for services provided. If the provider organization does not . . .