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UNOFFICIAL COPY 26 RS BR 1224
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AN ACT relating to the reporting of medical debt. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Collection entity" means any individual, partnership, corporation, trust, 6
estate, cooperative, association, government or government subd ivision, 7
agency, or other entity that either: 8
1. Purchases medical debt; or 9
2. Collects medical debt on behalf of another person; 10
(b) "Consumer reporting agency" means any person who, for monetary fees, 11
dues, or on a cooperative nonprofit basis, regularly engages, in whole or in 12
part, in the practice of assembling or evaluating consumer credit 13
information or other information on consumer s for the purpose of 14
furnishing consumer reports or investigative consumer reports to third 15
parties; 16
(c) "Health care professional": 17
1. Means any person that provides health care services, products, or 18
devices; and 19
2. Includes a health facility as defined in KRS 216B.015; 20
(d) "Medical debt": 21
1. Means an obligation or alleged obligation of a consumer to pay any 22
amount related to the receipt of a health care service, product, or 23
device provided to a person by a health care professional; and 24
2. Does not include debt charged to a credit card unless the credit card is 25
issued under an open -ended or closed -ended plan offered specifically 26
for the payment of health care services, products, or devices; and 27
UNOFFICIAL COPY 26 RS BR 1224
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XXXX 12/18/2025 9:15 AM Jacketed
(e) "Person" includes: 1
1. A natural person; 2
2. Any type or for m of corporation, company, partnership, 3
proprietorship, association, or other legal entity; and 4
3. A government, governmental subdivision or agency, or other body 5
politic. 6
(2) A health care professional shall not furnish any portion of a medical debt to a 7
consumer reporting agency. 8
(3) A contract between a health care professional and a collection entity for the 9
purchase or collection of medical debt shall include a provision that prohibits the 10
reporting of any portion of the medical debt to a consumer reporting agency. 11
(4) Any portion of a medical debt that is furnished to a consumer reporting agency in 12
violation of this section shall be void and unenforceable. 13
(5) (a) A violation of this section shall be deemed an unfair, false, misleading, or 14
deceptive act or practice in the conduct of trade or commerce in violation of 15
KRS 367.170. 16
(b) All of the remedies, powers, and duties provided to the Attorney General 17
under KRS 367.110 to 367.300, and the penalties provided in KRS 367.990, 18
pertaining to any acts or p ractices declared unlawful by KRS 367.170, shall 19
apply with equal force and effect to a violation of this section. 20
(6) (a) The remedies and penalties prescribed in this section shall be cumulative. 21
(b) This section shall not be construed to limit or restri ct any powers, duties, 22
remedies, or penalties available to the Attorney General, the 23
Commonwealth, or any other person under any other statutory or common 24
law. 25
Section 2. This Act applies to contracts entered into or ren ewed on or after the 26
effective date of this Act. 27