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Sponsors say AB204's payment-plan amendments remove state fiscal note; stakeholders remain split on policy
Summary
Assembly Bill 204, which revises how medical debts are handled, will no longer carry a fiscal note for the Financial Institutions Division after sponsors amended the bill to limit payment-plan requirements to cases where a creditor intends to report negative information to a consumer reporting agency.
Assemblymember Max Carter appeared before the Ways and Means Committee to present Assembly Bill 204, a bill that revises provisions relating to medical debt. Carter said a proposed amendment to Section 13 would require healthcare entities and collection agencies to offer specified payment plans only when they intend to report a medical debt to a consumer reporting agency; that change, Carter said, removes the requirement that the Financial Institutions Division (FID) develop regulations and eliminates the FID fiscal note.
Carter told the committee the payment-plan provisions were modeled on National Consumer Law Center language and would apply only if a creditor sought to report negative information about a medical debt. The sponsor also said stakeholders are continuing policy discussions and that some opposition would focus on policy rather than fiscal issues.
Stakeholder testimony was mixed. Supporters included patient-advocacy organizations and legal-service coalitions, which urged protections for consumers and flexible payment plans. Opponents included medical professional organizations and collections-industry representatives. Several medical providers and trade groups warned of large administrative burdens and potential revenue impacts for providers; Receivables Management Association International said it was moving from support to opposition after reviewing substantial amendments.
The Financial Institutions Division confirmed by phone that the agency’s fiscal note would be removed with the section-13 amendment and removal of section 18. Several health-care provider groups remained concerned about administrative and fiscal impacts on clinics and physician practices despite the sponsor’s statement that the amendment addresses the committee’s fiscal focus.
The committee closed the fiscal hearing on AB204 after the agency confirmed removal of its fiscal note; no vote was taken.
