Relates to the definition of medical debt; clarifies that such debt must be related to health care services, products or devices provided to a person by a hospital.
Summary
A00427 amends New York’s General Business Law definition of “medical debt.” The bill clarifies that medical debt means an obligation or alleged obligation related to the receipt of health care services, products, or devices provided to a person by a hospital licensed under the Public Health Law, a health care professional authorized under the Education Law, or an ambulance service certified under the Public Health Law. It also preserves the existing rule that debt charged to a credit card is generally excluded, unless the card is specifically issued for paying health care expenses.
The measure is tied to, and would take effect with, a related 2024 law addressing the definition of medical debt. In practical terms, it narrows and clarifies which obligations are treated as medical debt under state law, which can affect consumer debt collection practices, credit reporting, and protections that apply to medical debt. The bill appears intended to resolve ambiguity about whether the debt must be connected to services provided to a person and to specified health care providers.
The available voting history shows strong support in committee, with unanimous favorable votes in both the Assembly Consumer Affairs and Protection Committee and the Assembly Rules Committee. No committee transcripts were provided, but the lack of recorded opposition in the votes suggests the bill was viewed as a technical or clarifying measure rather than a controversial policy change.
There is little evidence of major contention in the materials provided. Any potential point of debate would likely concern whether the clarified definition is too narrow or too broad, especially as it relates to what kinds of health-related charges qualify as medical debt and how credit-card-based financing for medical care should be treated. However, the unanimous committee votes indicate that no significant disagreement surfaced in the available legislative record.
Impact
The bill would amend section 380-a of the General Business Law, refining the statutory definition of “medical debt” for purposes of New York’s consumer protection and debt collection framework. By specifying that the debt must relate to health care services, products, or devices provided to a person by a hospital, licensed health care professional, or certified ambulance service, it would affect which obligations receive medical-debt treatment under state law. The bill also maintains the exclusion for ordinary credit card debt, while preserving an exception for cards specifically designed for health care financing.
Sentiment
The overall sentiment reflected in the available record is favorable and noncontroversial. The bill advanced unanimously through the Assembly Consumer Affairs and Protection Committee and the Assembly Rules Committee, suggesting broad agreement that it is a clarifying amendment to existing medical-debt law. With no committee transcripts or recorded dissent, the measure appears to have been treated as a technical follow-up to prior legislation rather than a disputed policy shift.
Contention
No major contention is evident in the provided materials. The most likely substantive issue is the scope of the definition: consumer advocates may favor a clear, enforceable definition that captures health-related obligations, while creditors or financing entities could be attentive to how the bill distinguishes medical debt from general consumer debt and credit-card balances. Another possible point of discussion is whether the reference to services provided “to a person” and to specific provider categories could exclude some related charges, but the unanimous committee votes suggest any such concerns were not significant in the available proceedings.
Same As
Relates to the definition of medical debt; clarifies that such debt must be related to health care services, products or devices provided to a person by a hospital.
Relates to the definition of medical debt; clarifies that such debt must be related to health care services, products or devices provided to a person by a hospital.
Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.
Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.
Relating to health care services provided at a hospital by a physician who is not a member of the hospital's medical staff and the hospital's liability for health care services provided by such a physician.