Yesterday, we told you about a lawsuit that had been filed challenging the constitutionality of Nevada's new medical debt collection law (SB 248) which goes into effect July 1, 2021. The lawsuit asks the District Court of Nevada to declare SB 248 is unenforceable and grant preliminary and permanent injunctive relief. Yesterday afternoon the federal court set some deadlines related to the filing.
Noting that the lawsuit and motions raise "very substantive issues," the court has allowed the state of Nevada until July 9, 2021, to respond to the motion for preliminary injunction requested by the plaintiffs, who will have until July 16, 2021to reply. The Court will hear arguments regarding the motion for preliminary injunction and emergency motion for temporary restraining order filed by the plaintiffs on July 27, 2021.
Since the federal court won't hear arguments about SB248 until late July, accounts receivable entities should be prepared to comply with the law this coming Thursday, July 1, 2021. We will continue to keep you updated as this lawsuit makes its way through the court.