Oregon Statutes 646A.677 – Requirement to screen for financial assistance before transferring medical debt for collection; permitted interest rate; unlawful collection practices

(1) As used in this section:

Terms Used In Oregon Statutes 646A.677

Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}

(a) ‘Debt collector’ has the meaning given that term in ORS § 646.639.

(b) ‘Financial assistance’ means the written financial assistance policy described in ORS § 442.610.

(d) ‘Hospital-affiliated clinic’ has the meaning give that term in ORS § 442.612.

(e) ‘Medical debt’ means an amount owed by a patient to a hospital or a nonprofit hospital-affiliated clinic for medically necessary services or supplies.

(f) ‘Medically necessary’ has the meaning given that term in ORS § 442.612.

(g) ‘Nonprofit’ has the meaning given that term in ORS § 442.612.

(2) A hospital and a nonprofit hospital-affiliated clinic shall post the hospital’s financial assistance policy in the manner described in ORS § 442.610 (3)(d).

(3) Upon the request of a patient or an individual who is authorized to act on behalf of a patient, a hospital or hospital-affiliated clinic shall conduct a screening to determine if the patient qualifies for:

(a) Financial assistance under the hospital’s financial assistance policy; or

(b) The state medical assistance program.

(4) Before transferring an unpaid charge for services to a debt collector or referring an unpaid charge for collection, a hospital or hospital-affiliated clinic shall:

(a) Conduct a screening to determine if the patient qualifies for financial assistance as described in ORS § 442.614 (1)(a)(A), if applicable; and

(b) Provide a copy of its financial assistance policy to the patient along with an application for financial assistance.

(5) A hospital or nonprofit hospital-affiliated clinic may conduct the screening described in subsections (3) and (4) of this section using commercially available services, software or online tools.

(6) As a condition for providing financial assistance, a hospital may require a patient to:

(a) Respond to requests from the patient’s primary insurer as necessary for the insurer to adjudicate a claim for reimbursement of the cost of services; and

(b) Provide information concerning any potential third party liability for the cost of services including but not limited to:

(A) Information about the coordination of benefits between insurers that cover the patient’s care;

(B) Accident reports; and

(7) If a patient qualifies for financial assistance under ORS § 442.614 (1)(a)(A), a hospital, nonprofit hospital-affiliated clinic or other debt collector may not charge interest on the patient’s medical debt.

(8)(a) Except as provided in paragraph (b) of this subsection, the interest that a hospital, nonprofit hospital-affiliated clinic or other debt collector may charge on a medical debt owed by a patient who does not qualify for financial assistance under ORS § 442.614 (1)(a)(A) may not exceed the weekly average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the week preceding the date when the patient was first billed, except that the interest may not be less than two percent per annum or more than five percent per annum.

(b) Upon entry of a judgment against a patient described in paragraph (a) of this subsection, a hospital, nonprofit hospital-affiliated clinic or other debt collector may increase the interest charged on a medical debt up to the amount specified in ORS § 82.010.

(9) A hospital, hospital-affiliated clinic or other debt collector may not attempt to collect a medical debt from a patient’s child or other family member who is not financially responsible for the debt under ORS Chapter 108.

(10) It is an unlawful collection practice under ORS § 646.639 for a hospital, hospital-affiliated clinic or other debt collector to collect or attempt to collect a medical debt in a manner that the hospital, hospital-affiliated clinic or other debt collector knows, or after exercising reasonable diligence would know, is in violation of this section. [2019 c.497 § 4; 2021 c.96 § 2; 2023 c.263 § 4]

The amendments to 646A.677 by section 4, chapter 263, Oregon Laws 2023, become operative July 1, 2024. See section 6, chapter 263, Oregon Laws 2023. The text that is operative until July 1, 2024, is set forth for the user’s convenience.