AFSA Expresses Concerns with Oregon’s Medical Debt Bill
AFSA’s State Government Affairs team submitted a comment letter to the Oregon House Committee on Behavioral Health and Health Care regarding SB 605, a bill that would significantly amend Oregon’s existing medical debt collection statutes.
AFSA expressed concerns about the bill’s broad and unclear definitions, particularly the redefinition of “medical debt” to include third-party loans and credit extended to patients for medical services. AFSA emphasized that expanding the definition would create compliance challenges and unintended consequences for traditional consumer lenders who offer general-purpose or point-of-sale loans that may incidentally be used for healthcare expenses.
AFSA also noted that the bill’s new disclosure requirements and payment plan mandates could disrupt established credit products and restrict consumer access to flexible financing options. The letter stressed that many of these requirements may duplicate or conflict with existing federal and state consumer protection laws, creating confusion for both consumers and creditors.
AFSA urged lawmakers to reconsider the bill’s scope and definitions, and to engage with stakeholders to ensure that any legislation targeting medical debt truly addresses abusive practices without discouraging access to responsible credit.
This and other SGA advocacy efforts can be found on the direct advocacy section of AFSA’s website.
May 27th, 2025