Federal vs State Rules on Medical Debt Credit Reporting

On November 13, 2025 / Ambulance, Client Education, EMS, Healthcare Debt, News

Federal vs State Rules on Medical Debt Credit Reporting

On October 27, the Consumer Financial Protection Bureau (CFPB) formally confirmed that the Fair Credit Reporting Act (FCRA) broadly preempts state laws on credit reporting. You may be wondering what this means for your medical practice’s accounts in collections and how this will change the landscape going forward. To learn more about that, we first need to look at how this new interpretive rule came about in the first place.

How We Got Here

After being established in 1970, the FCRA has gone through several amendments to modernize it as the consumer reporting landscape changed. The FCRA has always preempted state law, that is, its provisions have always overruled state guidance. Over time, however, the exact scope of this preemption has changed. The FCRA has so far only preempted laws that were directly inconsistent with its provisions, meaning that states were free to issue their own laws so long as they did not contradict the FCRA’s regulations.

One example of this is how various states handle medical debt and credit reporting. The FCRA does not have any specific provisions regarding how medical debt should be addressed, so many states have developed their own laws in the interest of protecting consumers. Fifteen states have passed laws limiting or completely banning credit reporting on medical debt, while the rest treat medical debt mostly like any other type of debt.

Back in July 2022, the CFPB issued an interpretive rule stating that the FCRA has a limited preemptive scope, allowing states to continue to pass and enforce their own credit reporting laws where they didn’t explicitly conflict with FCRA provisions. However, this rule was withdrawn in May 2025.

The October 27 issuance is what the CFPB is replacing the 2022 interpretation with, stating that the old rule was unnecessary, confusing, and burdensome. This new issuance attempts to restore standardization across the country by making states comply with the letter of the FCRA only, no longer allowing for interpretation by individual states.

What This Means For You

This rule has the potential to significantly impact your medical practice. If you’re located in a state where medical debt credit reporting has been banned or restricted, you may be eager to start credit reporting, or have your debt collection agency do the same.

However, the rule is still quite new, and for now, state regulations are still in play. Interpretive rules such as this one are considered guidance, and it’s the courts that will determine exactly how this provision will impact the law. Over the coming months, you can expect to see many groups challenging (consumers, advocacy groups) or defending (medical practices, banks) the new rule in court. Already, the American Collectors Association (ACA) has filed suit, challenging Colorado’s House Bill 23-1126; the country’s first state law prohibiting the reporting of medical debt information on credit reports.

In the meantime, debt collection agencies—including us at FFR—will operate as usual, following state laws where they apply while simultaneously keeping an eye on unfolding legal cases and upcoming legislation. The landscape has been in flux for some time, but FFR will keep up with any and all regulatory changes, keep you informed as needed, and continue to collect compliantly and compassionately.

Sources:

https://www.accountsrecovery.net/2025/10/28/cfpb-reasserts-federal-preemption-of-state-credit-reporting-laws/

https://www.consumerfinancialserviceslawmonitor.com/2025/10/cfpb-revokes-2022-interpretive-rule-on-fcra-preemption-scope/

https://www.newsweek.com/millions-could-see-medical-debt-added-to-credit-reports-10952250

https://www.huschblackwell.com/newsandinsights/cfpb-publishes-new-interpretive-rule-supporting-broad-fcra-preemption

https://www.federalregister.gov/documents/2025/10/28/2025-19671/fair-credit-reporting-act-preemption-of-state-laws

https://www.acainternational.org/member-alert/aca-is-taking-legal-action-against-colorado-medical-debt-reporting-ban/

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What the Affordable Care Act’s 80/20 Rule Means for Your Health Insurance

On September 17, 2025 / Ambulance, Client Education, Collections, Education Debt, EMS, Healthcare Debt, News

What the Affordable Care Act’s 80/20 Rule Means for Your Health Insurance

Health insurance can feel complicated, but one of the most consumer-friendly protections built into the Affordable Care Act (ACA) is something called the 80/20 Rule. This rule, also known as the Medical Loss Ratio (MLR) requirement, was designed to make sure you get the most value out of the money you spend on health insurance premiums.

What is the ACA’s 80/20 Rule?

Under the ACA, insurance companies must spend the majority of the premium dollars they collect on actual medical care and health-related services, not on profits or administrative expenses. Specifically:

For individual and small group plans, insurers must spend at least 80% of premium dollars on medical care and quality improvement.
For large group plans (usually offered by bigger employers), that requirement increases to 85%, leaving only 15% for overhead and profit.

This means that when you pay your health insurance premium each month, most of that money goes directly towards covering doctor visits, hospital stays, prescriptions, and programs that improve health outcomes.

The 80/20 Rule protects employees in several ways. First, it ensures that the money you contribute towards health insurance is being used primarily for your care, rather than administrative costs like advertising or executive salaries. This creates more value for employees and families, helping to keep coverage focused on health rather than profits.

Second, the Rule promotes transparency. Insurance companies are required to report how they spend premium dollars each year. If they don’t meet the 80/20 standard, they must issue rebates. Sometimes these rebates go directly to employees, but often they are sent to employers, who are then obligated to use the funds to benefit their workers, such as reducing premium contributions or enhancing coverage options.

For example, if your insurer collects $1,000 in premiums, at least $800 must be used to pay for medical care and health services. Only $200 can be used for overhead or profit. If the insurer only spends $750 on care, it hasn’t met the standard, and the difference must be refunded to policy holders.

For employees, this rule offers reassurance that your health insurance premiums are truly working for you. It also keeps insurance companies accountable, ensuring that health coverage remains more affordable and consumer friendly.

The Affordable Care Act’s 80/20 Rule may not be something you hear about every day, but it is a powerful protection. It guarantees that most of your premium dollars are invested directly into your health care, and if an insurance company falls short, you could receive a rebate.

For more information, please visit: Rate Review & the 80/20 Rule | HealthCare.gov

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Know My Debt. Facts about debt collection rights and consumer financial education.

On April 24, 2025 / Ambulance, Client Education, EMS, News

Know My Debt. Facts about debt collection rights and consumer financial education.

As part of the accounts receivable management industry, we know how critical it is to combat the rise of financial misinformation online. That’s why we’re spotlighting Know My Debt, a resource by ACA International that helps consumers understand their rights, avoid scams, and make confident choices when it comes to resolving debt.

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When to Involve a Collection Agency: The Right Timing

On April 24, 2025 / Ambulance, Client Education, EMS, News

When to Involve a Collection Agency: The Right Timing

Despite your best efforts, sometimes consumers may fail to meet their payment obligations. While it’s essential to maintain a positive client relationship, there comes a time when you need to bring in professional help to ensure the payment is made. This is when working with a reputable debt collection agency, like FFR, Inc., can provide a solution.

Here’s when to consider enlisting a collection agency:

After 60-90-120 Days of Nonpayment
Customer not paying invoice after 60-90-120 days? This may be a clear sign that it’s time to escalate the situation. At this point, the client is likely either unwilling or unable to pay and continued internal efforts may not be as effective. A collection agency can help recover your funds without damaging your business relationships.
When Internal Collection Efforts Have Failed
Your team may have already made multiple calls, sent reminders, and offered payment plans, but if those methods have not yielded results, working with a collection agency becomes an efficient and effective solution. Agencies like FFR, Inc., have specialized systems and experience to handle difficult cases, increasing your chances of recovering past-due accounts.
When You’re Dealing with Large Accounts
Sometimes, large accounts with significant overdue balances require a more formal and professional approach. A collection agency has the resources and expertise to handle large, complex accounts that may be beyond the scope of your in-house team.
To Maintain Your Reputation
Many businesses hesitate to send their clients to collections, worried about damaging relationships. However, a compassionate and professional debt recovery agency like FFR, Inc. can provide debt recovery services effectively while ensuring a respectful and fair approach. By outsourcing the collections process, you prevent potential conflicts and keep your business reputation intact.
When You Need to Focus on Your Core Business
Collection efforts can be time-consuming, taking your attention away from essential priorities like patient care, student support, and organizational growth. Outsourcing collections to a professional agency frees up your resources so you can focus on growing your business.

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Maximizing Cash Flow: Top Account Receivable Strategies and When to Work with FFR, Inc.

On April 10, 2025 / Ambulance, Client Education, EMS, News

Maximizing Cash Flow: Top Account Receivable Strategies and When to Work with FFR, Inc.

In business, maintaining healthy cash flow is essential for growth and profitability. One critical aspect of achieving this is effective management of accounts receivable (AR). However, if not handled properly, overdue invoices can significantly hinder financial health, affecting your ability to reinvest in your business. This is where strategic account receivable management and professional help from the best debt collection agency like FFR, Inc. can make all the difference.

Why Efficient Accounts Receivable Management Matters

Accounts receivable is the money owed to your business for products or services already delivered. Efficient AR management ensures you receive payments on time, allowing your business to maintain smooth operations, pay employees, and reinvest profits for growth. When AR management is ignored or mishandled, overdue invoices pile up, causing cash flow issues, high administrative costs, and a negative impact on customer relationships.

Here’s how to ensure your AR process works effectively:

1. Set Clear Payment Terms
  Establish clear payment terms with your consumers from the outset. This includes the invoice due date, penalties for late payments, and any early payment discounts. Having these terms outlined in contracts and communicated clearly at the start can reduce confusion and set expectations.
2. Invoice Promptly and Accurately
  Always invoice promptly and ensure that the details are accurate. Include the correct billing information, payment instructions, and a breakdown of products or services provided. The sooner you send out invoices, the sooner you’ll be paid.
3. Leverage Technology for Automation
  Use accounting software that automatically generates and sends invoices, tracks overdue accounts, and sends reminders.
  This takes much of the manual work out of the equation and reduces the risk of human error.
4. Offer Multiple Payment Options
  Make it easy for consumers to pay you by offering various payment methods, such as credit cards, ACH transfers, or online payment gateways. The more convenient you make the process, the more likely you’ll receive payment on time.
5. Stay in Regular Contact with Clients
  Keep communication channels open with your consumers. A friendly reminder a few days before the invoice is due or a polite follow-up if payment is late can work wonders in keeping things on track.

When is the best time to Hire a Collection Agency

Despite having a strong AR management process in place, some accounts may still go unpaid. At this point, if you hire a collection agency, it can help recover funds that may otherwise be written off as losses. A professional debt collector like FFR, Inc. specializes in compassionate and effective debt recovery, ensuring that outstanding invoices are addressed while maintaining positive client relationships.

Work with the Best Debt Collection Agency

If overdue accounts are becoming a challenge for your business, partnering with the best debt collection agency can help you recover lost revenue efficiently. FFR, Inc. offers a strategic approach to debt recovery, allowing you to focus on growing your business while we handle collections professionally and respectfully.

Don’t let unpaid invoices disrupt your cash flow. Contact FFR, Inc. today to learn how our expert debt collectors can help you maximize your revenue and maintain financial stability.

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