A key provision of California’s new medical debt law, SB 1061 (Limón, 2024), is now in effect. As of July 1, 2025, any contract that creates a medical debt must include specific consumer protection language. Contracts that do not include the required disclosure will be considered void and unenforceable.

This follows an earlier provision of the law, which took effect January 1, 2025, and prohibits physicians and their billing partners from reporting medical debt to consumer credit reporting agencies.

SB 1061 represents a major shift in how medical debt is managed in California, with significant implications for billing practices and financial disclosures. To help physician practices comply, the California Medical Association (CMA) has published a fact sheet that outlines the law’s requirements, offers compliance tips, and provides links to updated sample forms in the CMA Health Law Library. The fact sheet is available free to CMA members.