Attorney says Tennessee medical-debt bill stalled; rule-making package filed with attorney general

At the April 9 meeting, board attorney Joseph Wharton updated members on two separate rule- and law-related items: proposed state legislation dealing with medical debt on credit reports, and the board’s own rule-making package.

Wharton said that Senate Bill 0402 and a companion House Bill 0539 would have prohibited health care providers from reporting a patient’s medical debt to consumer reporting agencies and would have prohibited consumer reporting agencies from publishing medical debt on consumer reports regardless of balance. "The last update on that bill was March 4," Wharton said, and it "does not appear at this point in time that it is moving forward. It seems to have been stopped and most likely will not become an active piece of legislation." He added that he would notify the board if the status changes.

Wharton and members also discussed the broader federal context, including recent actions and litigation involving the Consumer Financial Protection Bureau (CFPB) and industry challenges brought by trade groups such as the American Collectors Association. Board members noted that several states are considering similar measures restricting credit reporting of medical debt and that a patchwork of state rules could create compliance challenges for consumer reporting agencies.

Separately, Wharton reported that the board’s rule-making package had been filed with the state attorney general’s office on Feb. 24 for a constitutionality review, which he expects to complete by the end of the month. If approved, the department will file the rules with the secretary of state for a 90-day posting period before the rules become effective; the board will issue an e-notify to membership when an effective date is known.

Board members discussed monitoring state and federal activity; no formal policy action on the proposed state bills or on CFPB matters was taken at the meeting.