The Consumer Financial Protection Bureau plans to retract an advisory opinion reminding debt collectors — including revenue cycle management firms often contracted by healthcare providers — that asking patients to pay for invalid or inaccurate medical bills is a violation of federal law.
The advisory opinion, published in the Federal Register in October, was challenged by two debt collection companies the same week. In a district court filing this month, the collection companies and the agency jointly requested a pause in the proceedings, saying the CFPB intends to revoke the opinion.
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The filing said the CFPB would provide a progress report regarding the revocation by July 14, with updates every 30 days. The agency did not respond to a request for comment.
The CFBP noted in its advisory opinion that many hospitals and health systems are now collecting on medical debts through third-party companies such as private equity-backed RCMs. The process may make it more challenging for patients to understand how much they truly owe, the agency said.
The opinion outlined several examples of invalid medical debt collection, including double-billing patients, charging them debts they don't owe or asking for payment for services they didn't receive — all violations of the Fair Debt Collection Practices Act.
News of the planned revocation comes as the bureau mulls potential layoffs. The Trump administration said earlier this month it intended to cut an estimated 1,500 jobs at the agency, according to reporting from the Wall Street Journal. On April 18, however, a federal judge paused the reduction in force.
