Montana Legislature limits healthcare debt collection practices under HB 273

Montana's House Bill 273 is making waves in the 69th Legislature, aiming to reshape the landscape of medical debt collection in the state. Introduced on February 11, 2025, this bill seeks to protect patients from aggressive collection practices that can exacerbate financial hardships, particularly in the wake of healthcare crises.

At its core, HB 273 prohibits a range of "prohibited collection actions" against patients, including threats of arrest, liens on primary residences, and wage garnishments. The bill defines "medical debt" broadly, encompassing any financial obligation arising from healthcare services, and establishes clear guidelines for healthcare providers regarding the timing and nature of collection actions. Notably, it mandates a waiting period of 120 days after the first bill is sent before any extraordinary collection actions can commence, along with a requirement for providers to notify patients at least 30 days in advance of such actions.

The bill has sparked significant debate among lawmakers and healthcare advocates. Proponents argue that it offers essential protections for vulnerable patients, particularly those facing economic challenges or health emergencies. Critics, however, express concerns about the potential impact on healthcare providers' ability to collect debts, fearing it could lead to increased costs for services or reduced access to care.

The implications of HB 273 extend beyond individual patients. Economically, it could alleviate some of the burdens associated with medical debt, which has been a growing issue in the U.S., contributing to personal bankruptcies and financial instability. Socially, the bill aims to foster a more compassionate approach to healthcare financing, especially during public health emergencies when patients may be most vulnerable.

As the bill progresses through the legislative process, its future remains uncertain. If passed, it could set a precedent for similar legislation in other states, potentially reshaping how medical debt is handled nationwide. Advocates are watching closely, hopeful that HB 273 will pave the way for a more equitable healthcare system in Montana.