Florida House passes bill revising medical debt collection practices

In a move aimed at addressing the growing issue of medical debt in Florida, the State Legislature has introduced House Bill 547, which seeks to amend existing laws regarding billing and collection practices by healthcare facilities. Introduced on March 28, 2025, the bill revises the definition of "extraordinary collection action" and provides specific exceptions that could significantly impact how medical debts are handled.

The primary purpose of House Bill 547 is to clarify the circumstances under which healthcare facilities can engage in extraordinary collection actions, such as selling an individual's debt or reporting adverse information to credit agencies. Notably, the bill introduces an exception that allows facilities to pursue these actions in cases involving the sale of certain debts, which could lead to increased financial pressure on patients struggling with medical bills.

The bill has sparked considerable debate among lawmakers and advocacy groups. Proponents argue that the changes are necessary to streamline the collection process and reduce the burden on healthcare providers, who often face challenges in recouping costs from unpaid medical bills. However, critics express concern that the bill may exacerbate the financial hardships faced by vulnerable populations, particularly those already grappling with high medical expenses. They argue that allowing facilities to sell debts could lead to aggressive collection practices that disproportionately affect low-income individuals.

The implications of House Bill 547 extend beyond the immediate financial landscape. Economically, the bill could influence how healthcare facilities manage their finances and interact with patients regarding unpaid bills. Socially, it raises questions about the fairness of medical debt collection practices and the potential for increased financial strain on families already facing healthcare costs.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders are closely monitoring discussions, with many advocating for amendments that would protect patients from aggressive collection tactics. The outcome of House Bill 547 could set a precedent for how medical debt is treated in Florida, shaping the financial landscape for both healthcare providers and patients in the years to come.