# COVID-19 Medical Debt Collection Relief Act of 2021

This bill stops debt collection companies from pursuing people for medical bills they ran up during the COVID-19 pandemic. Specifically, it prevents collectors from suing, garnishing wages, or taking other legal action against people who owe money for medical care they received between January 27, 2020 and the date the bill becomes law. The idea is to give people who faced unexpected medical emergencies during the pandemic a break from aggressive debt collection tactics while they're still dealing with the financial fallout from the crisis.

The bill applies to any medical debt from that time period, whether it's from hospital stays, emergency room visits, doctor appointments, or other healthcare services. It doesn't erase the debt—people still technically owe the money—but it prevents creditors and collection agencies from using the court system to force payment through lawsuits or wage garnishment. This protection is temporary and limited to the pandemic period, so debts from medical care after the bill's effective date would still be subject to normal collection practices.

The practical impact is that people who received medical treatment during COVID-19 won't have to worry about being sued or having their paychecks garnished for those bills. This could help people who are already struggling financially avoid additional hardship from collection lawsuits. However, the debt doesn't disappear—creditors could still try to collect through other means like phone calls or letters, and the debt could still affect someone's credit score. The bill essentially gives people breathing room during a specific crisis period rather than forgiving the debt entirely.

COVID–19 Medical Debt Collection Relief Act of 2021

Van Hollen, Chris

COVID-19 Medical Debt Collection Relief Act of 2021 This bill temporarily limits certain activities to collect medical debts by health care providers that apply for, or accept, COVID-19 (i.e., coronavirus 2019) financial relief. Specifically, such health care providers must suspend extraordinary collection actions, such as selling a debt to a third-party collector or placing a lien on an individual's property, until the later of the end of the COVID-19 public health emergency or 18 months after the enactment of this bill. Further, such health care providers must notify individuals who have entered into medical debt repayment plans that they may request the suspension of payments during such period. Providers must provide reasonable repayment options for individuals once repayments resume, such as extending repayment periods. The bill also applies specified consumer protections to medical debt incurred for COVID-19-related testing and treatment between February 1, 2020, and 60 days after the COVID-19 public health emergency ends.