May 21, 2025
What You Need to Know: SB 1061 prohibits reporting medical debt to credit agencies beginning January 1, 2025, and requires new disclosure language in patient financial contracts starting July 1, 2025, or the debt will be void and unenforceable.
The California Medical Association (CMA) has published a new fact sheet to help physician practices prepare for upcoming changes under SB 1061 (Limón, 2024)—a new law that reshapes how medical debt is handled in California.
Beginning January 1, 2025, physicians and their billing partners will be prohibited from reporting medical debt to consumer credit reporting agencies. Additionally, starting July 1, 2025, any contract that creates a medical debt must include specific consumer protection language or it will be considered void and unenforceable.
To help practices understand and comply with these new requirements, CMA’s fact sheet outlines key provisions, offers compliance tips, and includes links to updated sample forms in the CMA Health Law Library.
The fact sheet is available free to members here.