A significant healthcare collection bill is moving through the South Carolina legislature, poised to establish new transparency requirements for patient billing and restrict aggressive medical debt collection. The proposed law aims to empower patients with clearer information regarding their financial obligations.
Beginning January 1, 2027, a wide range of “healthcare facilities”—including acute care hospitals, psychiatric centers, and hospice facilities—must provide patients with electronic itemized bills. These documents must use plain-language descriptions of services and clearly state the amount owed. Facilities are also required to notify patients of their right to receive these bills, even if the patient initially waives the option.
One of the bill’s most impactful provisions targets the debt collection process. If a patient or facility identifies a billing inaccuracy, collection agencies must immediately cease all activity and return the account to the healthcare provider. While a previous version of the bill provided liability protection for collection agencies regarding these inaccuracies, that protection has been removed in the latest revision.
Having successfully navigated the committee process and received recent revisions, the bill must now secure a final vote of approval in both the House and Senate. If passed by both chambers without further changes, the legislation will head to Governor Henry McMaster’s desk for his signature. Once signed, the state will begin the transition period toward the 2027 implementation date, giving healthcare providers and collection agencies time to update their digital infrastructure and notification protocols.
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