A new California law, SB 1061, which prevents most healthcare debt from being shared with credit reporting agencies, officially took effect on January 1, 2025. However, the requirement to include specific language in patient financial agreements takes effect July 1, 2025.
As a late addition to SB 1061, there is now required verbiage that must be included in patient financial agreements. Please refer to CDA’s updated Financial Agreement and Consent Form and Credit Card Authorization Form, which include this language:
“A holder of this medical debt contract is prohibited by Section 1785.27 of the Civil Code from furnishing any information related to this debt to a consumer credit reporting agency. In addition to any other penalties allowed by law, if a person knowingly violates that section by furnishing information regarding this debt to a consumer credit reporting agency, the debt shall be void and unenforceable.”
You can access the updated forms here:
We strongly encourage all practices to review and implement these materials before July 1 to ensure compliance.