New regulations limit medical debt collection practices from October 2025

Nevada's Assembly Bill 204, introduced on April 21, 2025, aims to address the growing issue of medical debt by implementing new regulations on collection practices. The bill seeks to protect consumers from aggressive debt collection tactics related to medical expenses incurred on or after October 1, 2025.

One of the key provisions of AB204 is the establishment of clear guidelines for collection agencies and health care entities regarding the handling of medical debt. The bill defines "medical debt" and outlines the responsibilities of collection agencies, ensuring that consumers are treated fairly and with respect during the debt collection process. Notably, the bill does not apply to any actions taken to collect medical debt incurred before the specified date, which has sparked some debate among lawmakers and stakeholders.

Supporters of the bill argue that it is a necessary step to alleviate the financial burden on individuals facing medical emergencies, especially in a state where healthcare costs continue to rise. They emphasize that many residents struggle with medical bills, leading to long-term financial instability. Critics, however, express concerns that the bill may hinder the ability of healthcare providers to recover costs, potentially impacting the overall healthcare system.

The implications of AB204 extend beyond individual consumers; it could reshape the landscape of medical debt collection in Nevada. Experts suggest that if passed, the bill could lead to a decrease in the number of lawsuits filed by collection agencies and a reduction in the negative impact of medical debt on credit scores. This, in turn, may foster a more equitable healthcare environment, allowing individuals to seek necessary medical care without the fear of crippling debt.

As the legislative process unfolds, the future of Assembly Bill 204 will depend on ongoing discussions among lawmakers, healthcare providers, and consumer advocates. The bill's potential to transform the way medical debt is managed in Nevada highlights the urgent need for reform in a system that often leaves vulnerable populations at risk.