Today we wanted to bring your attention to very recent legislation signed by Governor Kathy Hochul (S.6522A/A.7363A) designed to protect patients facing steep medical bills that can lead to wage garnishment or liens against their property.
The new Law (S.6522A/A.7363A) amends the civil practice law and rules and will prohibit health care providers from placing home liens on an individual's primary residence or garnishing wages to collect on medical debt. Governor Hochul stated in her press release that “no one should face the threat of losing their home or falling into further debt after seeking medical care." The Legislation was enacted, in part, on legislative consensus that nearly half of American adults struggle to afford health care costs, and more than 50,000 New Yorkers have been sued for medical debt over the past five years. Previously, hospitals or health care providers had been able to impose and enforce liens on a patient's primary residence to satisfy a judgment in a medical debt lawsuit which will now no longer be the case.
We are providing you with the following link to the Legislative history of the Bill - https://www.nysenate.gov/legislation/bills/2021/A7363. The link will also allow you to download the text revisions to the final Legislation signed by Governor Hochul if you are interested in reviewing the process as to how this important piece of legislation was enacted. The effective date of the new law is November 23, 2002.
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