State Passes Bill Enabling it to Act as Debt Collector for Medical Bills

Most collection agencies have some competition to deal with.  But what happens when one of your competitors is the state you’re working in?

Last Friday, Missouri’s House passed and sent to the governor a measure that would turn the state into a bill collector for hospitals and other health care providers.  The state’s even planning on keeping 20 percent of the amount collected.

"The collection aspect of this legislation reflects the growing need of states and municipalities to maximize their own revenue with effective receivables management and assist industries in their state local jurisdictions to do the same," said Michael Klozotsky, Associate at Kaulkin Ginsberg, parent company of Kaulkin Media and insideARM.com. "The Missouri bill is a creative win-win strategy for both the state and its healthcare providers in attempting to recover delinquent medical debt."

The bill passed both the House and the Senate, and now is waiting on a signature from the governor.

The idea to turn the state of Missouri into a healthcare collections agency is part of the state’s struggle with healthcare costs.  The provision was part of a wide-ranging insurance bill.  The sponsor, Rep. Doug Ervin, R-Kearney, said the goal was to make private insurance more accessible. The bill would broaden a subsidized high-risk pool and provide tax advantages for payment of insurance premiums.

"We’re not restoring the health care but we are setting up a state agency to collect the debt," said Rep. Rachel Bringer, D-Palmyra.