Colorado § 5-16-109.5 - Medical debt - requirements related to payment plans - collection prohibited during health insurance appeals - definition.

§ 5-16-109.5. Medical debt - requirements related to payment plans - collection prohibited during health insurance appeals - definition.

(1) (a) A debt collector or collection agency collecting on a medical debt that agrees to a payment plan with a consumer for the medical debt that is payable in four or more installments shall provide a written copy of the payment plan to the consumer within seven days after entering into the payment plan. The payment plan must prominently disclose the rate or rates of interest and the date by which the account will be paid in full if payments set by the schedule in the payment plan are made without interruption or that the plan is a temporary arrangement that will not pay off the debt in full.

(b) Before accelerating or declaring the payment plan no longer operative, if the consumer has not invoked the right to cease communication, the debt collector or collection agency collecting on a medical debt shall:

(I) Make at least two reasonable attempts to contact the consumer; and

(II) Provide notice to the consumer in writing that the payment plan may be accelerated or become inoperative.

(c) For purposes of this section, the notice to the consumer pursuant to subsection (1)(b)(II) of this section must be to the last-known address of the consumer.

(2) (a) A debt collector or collection agency collecting on a medical debt that knows or reasonably should know about an internal review, external review, or other appeal proceeding of a health insurance decision that is pending or was pending within the previous sixty-three days shall not:

(I) Provide information relating to a consumer's unpaid charges for health-care services to a consumer reporting agency;

(II) Communicate with the consumer regarding the unpaid charges for health-care services in an attempt to collect on the charges, unless requested by the consumer;

(III) Initiate a civil action or arbitration proceeding against the consumer to collect or attempt to collect the unpaid charges for health-care services; or

(IV) Sell the medical debt to a debt buyer.

(b) If a medical debt has already been reported to a consumer reporting agency or a legal action or arbitration proceeding has already been initiated, and the debt collector or collection agency collecting on the medical debt that reported the information learns that an internal review, external review, or other appeal proceeding of a health insurance decision is pending or was pending within the previous sixty-three days, that person shall instruct the consumer reporting agency to delete the information about the medical debt.

(c) As used in this section, "health-care services" means health-care services or medical products or devices.

Source: L. 2023: Entire section added, (SB 23-093), ch. 152, p. 644, § 4, effective May 4.