Colorado medical debt collection is tougher than ever. Since 2023, the state has capped interest on medical balances at 3 % and banned credit-bureau reporting of most healthcare debts. Add a three- to six-year statute of limitations, strict licensing under the Colorado Fair Debt Collection Practices Act (CFDCPA), and hospitals that lose all leverage if they ignore federal price-transparency rules—one compliance slip can cost thousands. Partnering with Midwest Service Bureau (MSB) gives you a Centennial-State workflow that recovers revenue quickly and ethically. Our 55 years in healthcare collections, and analytics-driven Expert Analysis portal turn aging AR into predictable cash while protecting your brand.
Colorado Medical Debt Collection Laws
State-Specific Regulations
- Statute of limitations: 6 years on written contracts and promissory notes (open-account or oral debts: 3 years).
- SB 23-093 (2023): Caps interest on Colorado medical debt at 3 % and lets consumers pause collection until they receive an itemized statement.
- HB 22-1285 (Price-Transparency): If a hospital isn’t compliant with federal price-posting rules, it cannot sue, garnish, or report the related balance.
- HB 19-1174 (Surprise Billing): Out-of-network balances stay out of collections until insurer-provider arbitration ends.
- HB 23-1126 (Credit-Reporting Ban): Prohibits bureaus from listing Colorado medical debt except on jumbo-loan credit pulls; collectors must disclose this ban in their first letter.
- HB 19-1089 (Low-Income Garnishment): Wages are exempt if household income ≤ 400 % FPL.
HIPAA & Breach-Notification
MSB encrypts all PHI in transit and at rest, enforces role-based access, and mirrors Colorado’s 30-day breach-notice window (C.R.S. § 6-1-716). Immutable audit logs live in our HIPAA + FDCPA dashboard for instant inspection.
CFDCPA Licensing & Bonding
Every third-party Colorado medical debt collection agency must hold a state license and a surety bond of $12 000–$20 000, renewed each July 1. coag.gov MSB’s collectors complete annual CFDCPA and HB 23-1126 trainings, ensuring every call is lawful and respectful.
Our Colorado Medical Debt Collection Process
Phase 1 – Account Review & Validation
We ingest receivables from Epic, Cerner, or Meditech Self-Pay Recovery, then scrub for duplicate claims, payer denials, price-transparency compliance, charity-care eligibility, surprise-billing holds, and time-barred accounts—so only valid Colorado medical debt collection files advance.
Phase 2 – Patient Contact & Communication
First notices mail within 24 hours and contain the required HB 23-1126 disclosure about credit reporting. Voice, SMS, email, and portal outreach honor Colorado’s 8 a.m.–9 p.m. window and weekly frequency guidelines. Patients can self-serve through our Early-Out Patient Collections portal, setting up zero-interest plans that respect the 3 % statutory cap.
Phase 3 – Resolution & Payment Processing
Settlements, HSA draws, and payment-plan drafts post instantly to your PMS; real-time APIs feed finance dashboards. All receipts satisfy CFDCPA and SB 23-093 disclosure rules, closing the loop on fully compliant Colorado medical debt collection.
Types of Medical Debt We Collect
Hospital & Health-System Debt
- Emergency-department visits
- Inpatient & outpatient surgeries
- Diagnostic imaging & lab services
- Surgical implants & supplies
Physician-Practice Collections
- Primary-care visits
- Specialist consults & office procedures
- Ancillary lab/imaging referrals
Specialty Healthcare Debt
- Dental debt collection
- Vision & hearing care
- Mental-health therapy
- Home-health & physical therapy balances
Benefits for Colorado Healthcare Providers
Improved Cash Flow
Clients using our Colorado medical debt collection program cut AR days by 31 %, freeing capital for staffing and tech upgrades.
Compliance Assurance
HIPAA encryption, state-licensed agents, 3 % interest-cap workflows, and price-transparency safeguards keep you clear of Attorney-General actions and media backlash.
Patient Relationship Preservation
Empathy-first scripting, clear billing, and flexible payment options maintain high Net Promoter Scores—even during tough Colorado medical debt collection conversations.
Frequently Asked Questions
What is the statute of limitations for medical debt in Colorado?
Six years for written contracts (three for oral or open-account). A new payment or written promise restarts the six-year clock.
Can medical debt affect my credit score in Colorado?
Rarely. HB 23-1126 bars bureaus from listing medical debt unless the credit pull involves a jumbo loan; MSB suppresses reporting in all other cases
How does medical debt collection differ from other debt?
Colorado medical debt collection must comply with HIPAA, CFDCPA licensing, a 3 % interest cap, surprise-billing holds, price-transparency enforcement, and the credit-reporting ban—far stricter than typical consumer debt.
What should I do if I receive a medical debt collection notice?
Review the itemized statement, compare charges with your Explanation of Benefits, and contact MSB within 30 days to dispute or arrange a plan.
Contact Us
Ready to strengthen your revenue cycle? Reach our nationwide MSB headquarters, serving Colorado providers every day.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
