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Meduit News Alert: New Regulatory Requirements for Healthcare Collection Practices

Posted by Meduit RCM on Feb 17, 2021 9:40:29 AM

The Federal Consumer Financial Protection Bureau (CFPB) has announced changes to regulations that govern debt collection activities, including healthcare bad debt, which become effective November 30, 2021.

Generally, the changes address three main components:

Disclosures and Information
  • Clarifies the information that a debt collector must provide to a consumer at the outset of debt collection communications, the actions the consumer may take in response and safe harbor provisions for collectors that comply with those requirements.

Legal Action Prohibitions
  • The new rule also has a potential impact on social media management where revenue cycle companies must make it clear on their social media pages how patients get their healthcare debt concerns addressed.

Credit Reporting Agencies
  • Prohibits debt collectors from bringing or threatening to bring a legal action against a consumer to collect a time-barred debt

Meduit has formed an internal, cross departmental team that is working closely with legal counsel and other industry experts to identify the detailed changes needed to compliance processes and seamlessly implement them by the deadline this coming November for Meduit’s bad debt clients.

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