Bill Text: AZ SB1796 | 2021 | Fifty-fifth Legislature 1st Regular | Introduced
Bill Title: Medical debts; homestead; financial assistance
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-02-04 - Senate read second time [SB1796 Detail]
Download: Arizona-2021-SB1796-Introduced.html
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REFERENCE TITLE: medical debts; homestead; financial assistance |
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State of Arizona Senate Fifty-fifth Legislature First Regular Session 2021
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SB 1796 |
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Introduced by Senator Mendez
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AN ACT
amending sections 33-1101, 33-1103, 33-1105, 33-1121, 33-1123, 33-1125, 33-1126 and 33-1131, Arizona Revised Statutes; amending title 36, chapter 4, Arizona Revised Statutes, by adding article 12; amending section 44-1691, Arizona Revised Statutes; amending title 44, chapter 11, article 6, Arizona Revised Statutes, by adding section 44-1697.01; relating to medical debts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 33-1101, Arizona Revised Statutes, is amended to read:
33-1101. Homestead exemptions; persons entitled to hold homesteads
A. Any person the age of eighteen years of age or over, married or single, who resides within the this state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding one hundred fifty thousand dollars $150,000 in value, any one of the following:
1. The person's interest in real property in one compact body upon on which exists a dwelling house in which the person resides.
2. The person's interest in one condominium or cooperative in which the person resides.
3. A mobile home in which the person resides.
4. A mobile home in which the person resides plus the land upon on which that mobile home is located.
B. For debt ARISING from RECEIPT of medical services, PRODUCTS or devices, the homestead exemption prescribed by this section applies to all of the person's equity in one of the properties prescribed by subsection A, PARAGRAPHS 1 through 4 of this section.
B. C. Only one homestead exemption may be held by a married couple or a single person under this section. The value as if specified in this section refers to the equity of a single person or married couple. Except as against debt arising from RECEIPT of medical services, products or devices, if a married couple lived together in a dwelling house, a condominium or cooperative, a mobile home or a mobile home plus land on which the mobile home is located and are then divorced, the total exemption allowed for that residence to either or both persons shall not exceed one hundred fifty thousand dollars $150,000 in value. For debt arising from receipt of medical services, products or devices, if a married couple divorces after living together in the homestead property, the unlimited homestead exemption applies to all of the equity for either or both persons.
C. D. The homestead exemption, not exceeding the value provided for in subsection A of this section, if any, automatically attaches to the person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property. The homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead with the proceeds, whichever period is shorter. Only one homestead exemption at a time may be held by a person under this section.
Sec. 2. Section 33-1103, Arizona Revised Statutes, is amended to read:
33-1103. Effective date of homestead exemption; extent of exemption; exceptions
A. The homestead provided for in section 33-1101, subsection A is exempt from process and from sale under a judgment or lien, except:
1. A consensual lien, including a mortgage or deed of trust, or contract of conveyance.
2. A lien for labor or materials claimed pursuant to section 33-981.
3. A lien for child support arrearages or spousal maintenance arrearages. An award of court ordered support is not a lien for the purposes of this paragraph unless one of the following applies:
(a) An arrearage has been reduced to judgment.
(b) A lien exists pursuant to section 25-516.
(c) The court orders a specific security interest of the property for support.
4. To the extent that a judgment or other lien may be satisfied from the equity of the debtor exceeding the homestead exemption under section 33-1101, except as prescribed by section 33-1101, subsection B.
B. A sale as described in subsection A of this section and not excepted by subsection A, paragraph 1, 2, 3 or 4 of this section is invalid and does not convey an interest in the homestead, whether made under a judgment existing before or after the homestead is established.
C. In a contempt proceeding brought to enforce payment of any form of child support or spousal maintenance, the court may consider the portion of property claimed as exempt pursuant to section 33-1101, subsection A, as a resource from which an obligor has the ability to pay.
Sec. 3. Section 33-1105, Arizona Revised Statutes, is amended to read:
33-1105. Sale by judgment creditor of property subject to homestead exemption
A judgment creditor other than a mortgagee or beneficiary under a trust deed may elect to sell by judicial sale as specified in title 12 the property in which the judgment debtor has a homestead under section 33-1101, subsection A, provided that if the judgment debtor's interest in the property shall exceed the sum of the judgment debtor's homestead plus the amount of any consensual liens on the property having priority to the judgment. A bid shall not be accepted by the officer in charge of a sale under this section which that does not exceed the amount of the judgment debtor's homestead plus the amount of any consensual liens on the property having a priority to the judgment plus the costs of the sale allowable under title 12. After receipt of a sufficient bid, the officer shall sell the property. From the proceeds, the officer shall first pay the amount of the homestead to the judgment debtor plus the amount of any consensual liens on the property having a priority to the judgment and then pay the costs of the sale. The remaining proceeds shall be applied in accordance with the provisions of section 12-1562, subsection A. If the sale does not occur, either because of voluntary abandonment by the judgment creditor or because no sufficient bid is made, the judgment creditor may not charge any costs or attorney fees incurred in connection with the sale against the judgment debtor by addition to the judgment or otherwise.
Sec. 4. Section 33-1121, Arizona Revised Statutes, is amended to read:
33-1121. Definitions
In this article, unless the context otherwise requires:
1. "Debtor" means an individual whether married or single utilizing using property described in this article for personal, family or household use.
2. "Medical debt" means a DEBT ARISING from the receipt of medical services, products or devices.
2. 3. "Process" means execution, attachment, garnishment, replevin, sale or any final process issued from any court or any other judicial remedy provided for collection of debts.
Sec. 5. Section 33-1123, Arizona Revised Statutes, is amended to read:
33-1123. Household furniture, furnishings and appliances
Household furniture and furnishings, household goods, including consumer electronic devices, and household appliances personally used by the debtor or a dependent of the debtor and not otherwise specifically prescribed in this chapter are exempt from process provided if their aggregate fair market value does not exceed the following:
1. six thousand dollars $6,000.
2. for any process for collection of medical debt, $15,000.
Sec. 6. Section 33-1125, Arizona Revised Statutes, is amended to read:
33-1125. Personal items
The following property of a debtor used primarily for personal, family or household purposes is exempt from process:
1. All wearing apparel of not more than a fair market value of five hundred dollars $500.
2. All musical instruments provided for the debtor's individual or family use of not more than an aggregate fair market value of four hundred dollars $400.
3. Horses, milk cows and poultry of not more than an aggregate fair market value of one thousand dollars $1,000.
4. All engagement and wedding rings of not more than an aggregate fair market value of two thousand dollars $2,000.
5. The library of a debtor, including books, manuals, published materials and personal documents of not more than an aggregate fair market value of two hundred fifty dollars $250.
6. One watch of not more than a fair market value of two hundred fifty dollars $250.
7. One typewriter, one computer, one bicycle, one sewing machine, a family bible or a lot in any burial ground of not more than an aggregate fair market value of two thousand dollars $2,000.
8. Equity in one motor vehicle of not more than six thousand dollars $6,000 except that for any process for collection of medical debt, the equity in one motor vehicle of not more than $15,000. If the debtor or debtor's dependent has a physical disability, the equity in the motor vehicle shall not exceed twelve thousand dollars $25,000.
9. Professionally prescribed prostheses for the debtor or a dependent of the debtor, including a wheelchair or motorized mobility device.
10. All firearms of not more than an aggregate fair market value of two thousand dollars $2,000.
11. All domestic animals or household pets.
Sec. 7. Section 33-1126, Arizona Revised Statutes, is amended to read:
33-1126. Money benefits or proceeds; exception
A. The following property of a debtor is exempt from execution, attachment or sale on any process issued from any court:
1. All money received by or payable to a surviving spouse or child on the life of a deceased spouse, parent or legal guardian, not exceeding twenty thousand dollars $20,000.
2. The earnings of the minor child of a debtor or the proceeds of these earnings by reason of any liability of the debtor not contracted for the special benefit of the minor child.
3. All monies received by or payable to a person entitled to receive child support or spousal maintenance pursuant to a court order.
4. All money, proceeds or benefits of any kind to be paid in a lump sum or to be rendered on a periodic or installment basis to the insured or any beneficiary under any policy of health, accident or disability insurance or any similar plan or program of benefits in use by any employer, except for premiums payable on the policy or debt of the insured secured by a pledge, and except for collection of any debt or obligation for which the insured or beneficiary has been paid under the plan or policy and except for payment of amounts ordered for support of a person from proceeds and benefits furnished in lieu of earnings that would have been subject to that order and subject to any exemption applicable to earnings so replaced.
5. All money arising from any claim for the destruction of, or damage to, exempt property and all proceeds or benefits of any kind arising from fire or other insurance on any property exempt under this article.
6. The cash surrender value of life insurance policies where if for a continuous unexpired period of two years the policies have been owned by a debtor. The policy shall have named as beneficiary the debtor's surviving spouse, child, parent, brother or sister. The policy may have named as beneficiary any other family member who is a dependent, in the proportion that the policy names any such beneficiary, except that, subject to the statute of limitations, the amount of any premium that is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1, with interest thereon, is not exempt. The exemption provided by this paragraph does not apply to a claim for the payment of a debt of the insured or beneficiary that is secured by a pledge or assignment of the cash value of the insurance policy or the proceeds of the policy. For the purposes of this paragraph, "dependent" means a family member who is dependent on the insured debtor for not less than half support.
7. An annuity contract where if for a continuous unexpired period of two years that contract has been owned by a debtor and has named as beneficiary the debtor, the debtor's surviving spouse, child, parent, brother or sister, or any other dependent family member, except that, subject to the statute of limitations, the amount of any premium, payment or deposit with respect to that contract is recoverable or avoidable by a creditor pursuant to title 44, chapter 8, article 1 is not exempt. The exemption provided by this paragraph does not apply to a claim for a payment of a debt of the annuitant or beneficiary that is secured by a pledge or assignment of the contract or its proceeds. For the purposes of this paragraph, "dependent" means a family member who is dependent on the debtor for not less than half support.
8. Any claim for damages recoverable by any person by reason of any levy on or sale under execution of that person's exempt personal property or by reason of the wrongful taking or detention of that property by any person, and the judgment recovered for damages.
9. A total of three hundred dollars $300 held in a single account in any one financial institution as defined by section 6-101, except that for any process for collection of medical debt, $3,000 held in a single account in any one financial institution as defined by section 6-101. The property declared exempt by this paragraph is not exempt from normal service charges assessed against the account by the financial institution at which the account is carried.
10. An interest in a college savings plan under section 529 of the internal revenue code of 1986, either as the owner or as the beneficiary. This does not include money contributed to the plan within two years before a debtor files for bankruptcy.
B. Any money or other assets payable to a participant in or beneficiary of, or any interest of any participant or beneficiary in, a retirement plan under section 401(a), 403(a), 403(b), 408, 408A or 409 or a deferred compensation plan under section 457 of the United States internal revenue code of 1986, as amended, whether the beneficiary's interest arises by inheritance, designation, appointment or otherwise, is exempt from all claims of creditors of the beneficiary or participant. This subsection does not apply to any of the following:
1. An alternate payee under a qualified domestic relations order, as defined in section 414(p) of the United States internal revenue code of 1986, as amended. The interest of any and all alternate payees is exempt from any and all claims of any creditor of the alternate payee.
2. Amounts contributed within one hundred twenty days before a debtor files for bankruptcy.
3. The assets of bankruptcy proceedings filed before July 1, 1987.
C. Any person eighteen years of age or over, married or single, who resides within this state and who does not exercise the homestead exemption under article 1 of this chapter may claim as a personal property homestead exempt from all process prepaid rent, including security deposits as provided in section 33-1321, subsection A, for the claimant's residence, not exceeding two thousand dollars $2,000.
D. This section does not exempt property from orders that are the result of a judgment for arrearages of child support or for a child support debt.
Sec. 8. Section 33-1131, Arizona Revised Statutes, is amended to read:
33-1131. Definition; wages; salary; compensation
A. For the purposes of this section, "disposable earnings" means that remaining portion of a debtor's wages, salary or compensation for his personal services, including bonuses and commissions, or otherwise, and includes payments pursuant to a pension or retirement program or deferred compensation plan, after deducting from such earnings those amounts required by law to be withheld.
B. Except as provided in subsection C of this section, the maximum part of the disposable earnings of a debtor for any workweek which that is subject to process may not exceed the following limits:
1. For any process for collection of medical debt, ten percent of DISPOSABLE earnings for that week or the amount by which disposable earnings for that week exceed sixty times the minimum hourly wage PRESCRIBED by federal law in effect at the time the EARNINGS are payable, whichever is less.
2. For any process for collection of a debt other THAN medical debt as PRESCRIBED in paragraph 1 OF this subsection, twenty-five per cent percent of disposable earnings for that week or the amount by which disposable earnings for that week exceed thirty times the minimum hourly wage prescribed by federal law in effect at the time the earnings are payable, whichever is less.
C. The exemptions provided in subsection B of this section do not apply in the case of any order for the support of any person. In such case, one-half of the disposable earnings of a debtor for any pay period is exempt from process.
D. The exemptions provided in this section do not apply in the case of any order of any court of bankruptcy under chapter XIII of the federal bankruptcy act or any debt due for any state or federal tax.
Sec. 9. Title 36, chapter 4, Arizona Revised Statutes, is amended by adding article 12, to read:
ARTICLE 12. HEALTH CARE INSTITUTION
FINANCIAL ASSISTANCE POLICIES
36-450.51. Definitions
In this article, unless the context otherwise requires:
1. "Health care services" or "medical services" means services for the diagnosis, prevention, treatment, cure or relief of a physical, dental, behavioral, substance use disorder or mental health condition, illness, injury or disease, including any procedures, products, devices or medications.
2. "Household income" means income calculated by using the methods used to calculate medicaid eligibility.
3. "Large health care facility" means any of the following:
(a) A hospital.
(b) An outpatient clinic or facility affiliated with a licensed hospital or operating under the license of a hospital.
(c) An ambulatory surgical center.
(d) A practice that provides outpatient medical, behavioral, optical, radiology, laboratory or dental services or other health care services with revenues of at least $20,000,000 annually.
(e) Any licensed health care professional who provides health care services in one or more of the settings listed in subdivisions (a), (b), (c) or (d) of this paragraph, but bills patients independently.
4. "Medical creditor" means any entity that provides health care services and to whom the consumer owes money for health care services, or the entity that provided health care services and to whom the consumer previously owed money if the medical debt has been purchased by one or more medical debt buyers.
5. "Medical debt" means a debt arising from the receipt of medical services, products or devices.
6. "Medical debt buyer" means a person or entity that is engaged in the business of purchasing medical debts for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney-at-law for litigation in order to collect such debt.
7. "Medical debt collector" means any person that regularly collects or attempts to collect, directly or indirectly, medical debts originally owed or due or asserted to be owed or due another. A medical debt buyer is considered to be a medical debt collector for all purposes.
8. "Patient" means the person who received health care services, including a parent if the patient is a minor, or a legal guardian if the patient is an adult under guardianship.
36-450.52. Financial assistance policy; large health care institutions
A. Each large health care facility is required to develop written financial assistance policies that comply with this article and any rules adopted pursuant to this article. This requirement applies regardless of whether the large health care facility is required to develop a financial assistance policy pursuant to federal law.
B. The financial assistance policy shall contain, at a minimum, all of the following:
1. A written financial assistance policy that applies to all emergency and other medically necessary health care services offered by the covered health care provider.
2. A plain language summary of the financial assistance policy, which shall not exceed two pages in length.
3. The eligibility criteria for financial assistance and a summary of the type of assistance that is available.
4. The method and application process that patients are to use to apply for financial assistance.
5. The information and documentation the large health care facility may require an individual to provide as part of the application.
6. The reasonable steps that the provider will take to determine whether a patient is eligible for financial assistance.
7. The billing and collections policy, including the actions that may be taken in the event of nonpayment, which shall comply with all applicable parts of this article and other applicable municipal, state or federal laws.
C. The financial assistance policy must be approved by the owners or governing body of a health care provider. The financial assistance policy shall be reviewed and approved on an annual basis by the owners or governing board.
36-450.53. Minimum requirements; financial assistance policies
A. In addition to any other actions required by the applicable municipal, state or federal law, large health care facilities must take the following steps before seeking payment for any emergency or medically necessary care:
1. Determine whether the patient has health insurance.
2. If the patient is uninsured, offer to screen the patient for public or private insurance eligibility and offer assistance if the patient chooses to apply for public or private insurance. A patient's refusal to be screened may not be grounds for denying financial assistance.
3. Offer to screen the patient for other public programs that may assist with health care costs. A patient's refusal to be screened may not be grounds for denying financial assistance.
4. If available, use information in the possession of the large health care facility to determine whether the patient is qualified for free or discounted care pursuant to subsection B of this section.
5. If the patient submits an application for financial assistance, determine the patient's eligibility for the financial assistance plan within fourteen days after the patient applies for financial assistance, suspending any billing or collections actions while eligibility is being determined.
B. The following patients shall qualify for financial assistance under the financial assistance plan, which applies to any charges for health care services that are not covered by insurance and would otherwise be billed to the patient:
1. A patient with a household income of up to two hundred percent of the federal poverty guidelines shall receive free care.
2. A patient with a household income of more than two hundred percent up to four hundred percent of the federal poverty guidelines shall be charged not more than the amount calculated in the following manner:
(a) Recalculate the patient's bill using the medicare reimbursement rate applicable on the dates of service.
(b) The patient shall be charged not more than fifty percent of the first $1,000 charged under this recalculated bill.
(c) The patient shall be charged not more than ten percent of any remaining amount between $1,001 and $5,000.
(d) The patient shall be charged not more than five percent of any remaining amount between $5,001 and $10,000.
(e) Any amount above $10,000 shall be provided to the patient as free care.
3. A patient with a household income of more than four hundred percent up to six hundred percent of the federal poverty guidelines shall receive the same discounts as patients with household income of more than two hundred up to four hundred percent of the federal poverty guidelines if the patient and the patient's household have incurred medical expenses from the current large health care facility’s bill and all other medical bills for medically necessary health care services received during the previous twelve months that in total exceed ten percent of the household's annual gross income.
4. In addition to other financial assistance provided pursuant to this article, a patient with household income at or below four hundred percent of the federal poverty guidelines may not be required to pay more than $2,300 in cumulative medical bills to large health care facilities per year. On a patient's request and documentation, any health care services that have been delivered by one or more large health care facilities after the $2,300 limit has been met must be provided as free care.
C. Eligibility shall be established as follows:
1. Household income shall be established by the most recent tax return unless the patient chooses to submit pay stubs, documentation of public assistance or other reasonable documentation of household income. If the large health care facility requires any other documentation, it shall list such documentation requirements in its financial assistance policy.
2. If the large health care facility uses a consumer report, as defined in section 603(d) of the Fair Credit Reporting Act, 15 United States Code section 1681a(d), or any score or rating based on consumer report information, the facility shall obtain the patient's consent for such use, and shall comply with all applicable provisions of this article and applicable state law.
3. A large health care facility may grant financial assistance notwithstanding a patient's failure to provide one of the required forms of documentation described in the financial assistance policy or application form and may rely on, but not require, other evidence of eligibility. A large health care facility may grant financial assistance based on a determination of presumptive eligibility relying on information in the facility's possession, but may not presumptively deny an application based on such other evidence.
D. If a large health care facility receives an application for financial assistance from a patient, the facility shall notify the patient in writing within thirty days as to whether it has approved or denied the application. The large health care facility shall provide a copy of any recalculated bill and calculation of financial assistance provided to the patient.
E. A large health care facility shall accept and consider a patient's application for financial assistance when it is submitted within one year after the date of the first bill after the provision of the health care services. If the patient is the subject of collection activity by the facility or a medical debt collector, including a lawsuit to collect a medical debt or negative credit reporting regarding a medical debt, and submits an application for financial assistance, the large health care facility shall accept and process the application at any time. If the patient submits a financial assistance application to a medical debt collector, the medical debt collector shall forward the application to the large health care facility within two business days and shall cease collection activity until notified by the large health care facility of the outcome of the application and any debt forgiven or new repayment terms.
F. Large health care facilities and medical debt collectors may not charge any interest or late fees to patients who qualify for financial assistance.
G. Large health care facilities and medical debt collectors shall offer to any patient who qualifies for financial assistance a payment plan of not less than twenty-four months, and shall not require the patient to make monthly payments that exceed five percent of the patient's gross monthly income. A large health care facility or medical debt collector may not impose any prepayment or early payment penalties or fees.
H. For a patient who has been found to be eligible for financial assistance, initial payment on a monthly payment plan shall not be due within the first ninety days after the health care services were provided.
36-450.54. Financial assistance policies; public access
A. A large health care facility must publicize its financial assistance policy widely, by doing all of the following:
1. Making the financial assistance policy and the financial assistance application form easily accessible online, through the large health care facility's website and through any patient portal or other online communication portal used by patients.
2. Making paper copies of the financial assistance policy and application form available on request and without charge. For hospitals, copies must be available, at a minimum, in the emergency department, if any, and in admissions areas.
3. Notifying and informing members of the community served by the large health care facility about the financial assistance policy in a manner reasonably calculated to reach those members who are most likely to require financial assistance, with such efforts commensurate to the size and income of the provider.
4. Notifying and informing individuals who receive care from the large health care facility about the financial assistance policy in the following ways:
(a) Offering a paper copy of the financial assistance policy to patients as part of the patient's first visit, or in the case of a hospital facility, during the intake and discharge process.
(b) Including a conspicuous written notice on billing statements, whether sent by the large health care facility or a medical debt collector, that notifies and informs recipients about the availability of financial assistance and includes the telephone number of the large health care facility's office or department that can provide information about the financial assistance policy and application process and the direct website address where copies of the financial assistance policy and application may be obtained.
(c) Setting up conspicuous public displays, or other measures reasonably calculated to attract a patient's attention, that notify and inform patients about the financial assistance policy in public locations in the large health care facility's office. For hospitals, displays must be posted in the emergency department, if any, and in admissions areas, at a minimum.
B. In all attempts, whether written or oral, by a medical creditor or medical debt collector to collect a medical debt for health care services provided by a large health care facility, the patient must be informed of any financial assistance policy available through the large health care facility.
C. A financial assistance policy shall include a notice that states, "This document contains important information about financial assistance for your bill. Contact [insert name and phone number of large health care facility] for translation assistance", translated in the five languages most frequently spoken by limited English proficient households as determined by United States census bureau data in the large health care facility's service area.
D. A large health care facility must accommodate any patient with limited English proficiency, by providing oral interpretation services to the patient on request and at no cost to the patient to explain the financial assistance policy and its application.
Sec. 10. Section 44-1691, Arizona Revised Statutes, is amended to read:
44-1691. Definitions
In this chapter, unless the context otherwise requires:
1. "Consumer" means an individual.
3. 2. "Consumer report":
(a) Means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for any of the following:
(a) (i) Credit or insurance to be used primarily for personal, family, or household purposes. , or
(b) (ii) Employment purposes. , or
(c) (iii) Other purposes authorized under section 44-1692. The term
(b) Does not include any of the following:
(i) Any report containing information solely as to transactions or experiences between the consumer and the person making the report. ; or
(ii) Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device. ; or
(iii) Any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his the person's decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made.
2. 3. "Consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information on consumers for the purpose of furnishing consumer reports to third parties.
4. "Employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating to evaluate a consumer for employment, promotion, reassignment or retention as an employee.
5. "File" when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
6. "MEDICAL CREDITOR" MEANS ANY ENTITY THAT PROVIDES MEDICAL SERVICES, PRODUCTS OR DEVICES, AND TO WHOM THE CONSUMER OWES MONEY FOR THOSE SERVICES, PRODUCTS OR DEVICES, OR THE ENTITY THAT PROVIDED MEDICAL SERVICES AND TO WHOM THE CONSUMER PREVIOUSLY OWED MONEY IF THE MEDICAL DEBT HAS BEEN PURCHASED BY ONE OR MORE medical DEBT BUYERS.
7. "MEDICAL DEBT" MEANS A DEBT ARISING FROM THE RECEIPT OF MEDICAL SERVICES, PRODUCTS, OR DEVICES.
8. "MEDICAL DEBT BUYER" MEANS A PERSON OR ENTITY THAT IS ENGAGED IN THE BUSINESS OF PURCHASING MEDICAL DEBTS FOR COLLECTION PURPOSES, WHETHER COLLECTing THE DEBT ITSELF OR HIRing A THIRD PARTY FOR COLLECTION OR AN ATTORNEY FOR LITIGATION IN ORDER TO COLLECT the DEBT.
9. "MEDICAL DEBT COLLECTOR" MEANS ANY PERSON THAT REGULARLY COLLECTS OR ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY, MEDICAL DEBTS ORIGINALLY OWED OR DUE OR ASSERTED TO BE OWED OR DUE ANOTHER. A MEDICAL DEBT BUYER IS deemed TO BE A MEDICAL DEBT COLLECTOR FOR ALL PURPOSES.
6. 10. "Person" means an individual, partnership, corporation, association, or any other entity of whatever kind or nature.
Sec. 11. Title 44, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 44-1697.01, to read:
44-1697.01. Medical debt reporting; one-year hold
A. During the one-year period immediately following the date on which a consumer first receives a bill for a medical debt, a medical creditor and a medical debt collector may not communicate with or report any information to any consumer reporting agency regarding that medical debt.
B. After the one-year period prescribed in subsection A of this section, medical creditors and medical debt collectors must give consumers at least one additional bill before reporting a medical debt to any consumer reporting agency. the bill must state that the debt is being reported to a consumer reporting agency and The amount reported to the consumer reporting agency must be the same as the amount stated in the bill.
