State Collection Service played a pivotal role in elevating the medical debt credit reporting policy concerns—investing substantial leadership time and resources to help regulators and lawmakers understand the real-world impact of the rule on healthcare delivery, provider solvency, and responsible credit reporting.
MADISON, Wis., May 15, 2025 /PRNewswire-PRWeb/ -- In a major policy reversal with far-reaching implications for patients, healthcare providers, and the revenue cycle industry, the Consumer Financial Protection Bureau (CFPB) has officially withdrawn its advisory opinion barring medical debt credit reporting. The decision follows months of sustained advocacy from key industry leaders who voiced concerns over the policy's unintended consequences on both patient access and provider financial stability.
Additionally, the bureau recently rescinded 57 pieces of guidance and interpretive rules that the CFPB formerly released, dating back to 2011. The package of rescinded guidance includes Debt Collection Practices (Reg F) - Deceptive and Unfair Collection of Medical Debt as well as several Bulletin's related to credit reporting processes under the Fair Credit Reporting Act (FCRA).
State Collection Service played a pivotal role in elevating these concerns—investing substantial leadership time and resources to help regulators and lawmakers understand the real-world impact of the rule on healthcare delivery, provider solvency, and responsible credit reporting.
"This is a clear example of how constructive dialogue and data-driven advocacy can lead to better policy outcomes," said Tim Haag, president & CEO of State Collection Service in addition to being the current ACA International Board President. "We appreciate the CFPB's willingness to revisit its position and listen to a broad range of perspectives."
The now-rescinded advisory had alarmed health systems and revenue cycle professionals, who feared it would severely hinder the collection of legitimate healthcare debts, ultimately jeopardizing the ability of many providers—particularly rural hospitals—to continue delivering quality care.
State's leadership team worked collaboratively with partners across the industry to present thoughtful alternatives, emphasizing the importance of transparency, patient protection, and fair treatment. State's education and advocacy efforts included:
- Collaborating with ACA International to sponsor an extensive economic impact study, which predicted a 10% drop in healthcare recoveries.
- Hosted a Webinar with Dr. Andrew Nigrinis, the economist who conducted the economic impact study.
- Sponsored multiple Webinars with HFMA highlighting the issues, with the most recent one being hosted in March 2025 to provide updated information from State's team and Leah Dempsey, shareholder at Brownstein Hyatt Farber Schreck and an experienced D.C. lobbyist.
- Collaborated with DC lobbyist Leah Dempsey to provide legislative updates at HFMA Annual Conference in 2024, and will once again present on June 23, 2025.
- Sponsored and served as members of HFMA's Best Practices for Resolution of Medical Accounts, providing guidance to healthcare providers on best practices before initiating extraordinary collection action.
- Providing national leadership: As the current ACA International Board President, Haag has spent months crisscrossing the county to discuss this critical issue with regulators, legislators, and other stakeholders to advocate for a balanced, practical policy.
- Engaging with White House Advisors: Haag has twice been invited to the White House to discuss medical debt policy with the Special Advisor to President Biden. He has been invited again to meet with President Trump's Special Advisor in early June along with State's Chief Compliance Officer Mike Frost.
The withdrawal of the CFPB's advisory opinion marks a meaningful victory for common-sense policy grounded in real-world data and collaboration. State's unwavering commitment to advocacy, education, and ethical practices has helped secure a more balanced approach—one that protects patients while preserving the financial health of healthcare providers. As the industry moves forward, State remains dedicated to fostering thoughtful solutions that promote transparency, accountability, and access to care for all.
About State
State improves the financial picture for healthcare providers by delivering increased financial results while ensuring a positive patient experience. Rooted in a tradition of ethics, integrity and innovation since 1949, State uses data analytics to drive performance and speech analytics with ongoing training to ensure patient satisfaction. A family-owned company now in its third generation of leadership, State assists healthcare organizations with services spanning the complete revenue cycle, including Pre-Service Financial Clearance, Early Out Self-Pay Resolution, Insurance Follow-Up and Bad Debt Collection. To learn more, visit: www.statecollectionservice.com.
Media Contact
Heather Taylor, State Collection Service, 1 7657306632, [email protected], www.statecollectionservice.com
SOURCE State Collection Service
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