Consumer Protection Laws for Patients: What You Need to Know in 2025

Every year, millions of Americans face surprise medical bills, hidden fees, or pressure to sign up for medical financing they don’t fully understand. In 2025, patient protection laws are stronger than ever - especially in New York - and they’re designed to stop providers from taking advantage of people at their most vulnerable moments. These aren’t just rules on paper. They change how you give consent, how you pay, and what happens if you can’t afford care.

What Changed in New York in 2024?

On October 20, 2024, New York rolled out three new laws that reshaped how healthcare providers handle patient finances and consent. These weren’t minor tweaks. They were direct responses to the fact that 100 million Americans carry $195 billion in medical debt, according to the Consumer Financial Protection Bureau. And in 2022, nearly 1 in 10 people under 65 had medical debt in collections.

The laws target three big problems:

• Using one form to get consent for both treatment AND payment
• Providers filling out medical financing applications for patients
• Requiring credit card details before emergency care

Separate Consent for Treatment and Payment

Before 2024, it was common practice for clinics and hospitals to hand you a single intake form. You signed it without reading - and by doing so, you’d agreed to both your treatment AND any payment plans or financing options. That’s no longer allowed.

Under Public Health Law Section 18-c, providers must now get two separate signatures: one for your medical care, and another, clearly labeled one for any payment arrangements. This means you can’t be pressured into signing up for CareCredit® or similar financing while you’re sitting in the waiting room, anxious about your diagnosis.

But here’s the catch: as of August 2025, enforcement of Section 18-c was suspended. That doesn’t mean the law is gone - it means providers are waiting for clearer guidance from the state. Until then, many offices are still using the old system, which puts you at risk. Always ask: “Is this consent for treatment only?” If they can’t answer clearly, walk away or demand a separate form.

Don’t Let Providers Fill Out Your Financing Applications

General Business Law Section 349-g makes it illegal for doctors, nurses, or billing staff to complete any part of a medical financing application - even if they say they’re just “helping.” That includes CareCredit®, Alphaeon Credit, or any other healthcare-specific loan product.

You can ask questions. You can ask for a brochure. You can even ask them to explain the interest rate. But the application? You have to fill it out yourself. Why? Because when a provider fills it out, they often push you toward higher-interest plans or longer terms - sometimes without telling you the full cost.

Violations can cost providers up to $5,000 per incident. That’s a big penalty. So if someone tries to type your name or income into a form for you, say no. Do it yourself. Read every line. If you don’t understand it, ask for time to review it later - or bring someone with you.

Never Give a Credit Card Before Emergency Care

General Business Law Section 519-a is one of the strongest protections. It bans providers from requiring you to hand over a credit card, pre-authorize a payment, or keep your card on file before you get emergency or medically necessary treatment.

This shuts down a shady practice where hospitals would demand your card before even seeing you - especially in ERs or urgent care centers. They’d say, “We need this for billing.” But under this law, that’s illegal. You have the right to get care first, talk about payment later.

And here’s something most people don’t know: if you pay with a regular credit card, you lose key protections. Only payments made through healthcare-specific financing products (like CareCredit®) qualify for federal and state safeguards - including protection from wage garnishment, liens on your home, or being reported to credit bureaus as medical debt.

So if you’re using your Visa or Mastercard to pay for surgery or a hospital stay, you’re treating it like any other purchase. That means if you can’t pay, it goes straight to collections - and your credit score takes a hit. The law requires providers to warn you about this every time you use a traditional credit card for medical expenses. If they don’t, they’re breaking the law.

How This Compares to Federal Laws

The federal No Surprises Act, which took effect in January 2022, protects you from surprise bills from out-of-network providers. That’s important - but it doesn’t cover what happens inside the hospital or clinic.

New York’s laws go further. They protect you from financial traps even when you’re seeing an in-network doctor. They stop providers from manipulating your payment choices. They force transparency. And they give you control over your own financial decisions during care.

The CFPB’s 2024 rule removing medical debt from credit reports is another win - but it only applies to debt that’s reported as medical. If you paid with a regular credit card and fell behind, that debt might still show up on your report. New York’s laws try to close that gap.

What You Should Do Right Now

These laws mean you have more power - but only if you use it. Here’s what to do before your next medical appointment:

1. Ask for separate consent forms. Don’t sign anything that combines treatment and payment. If they don’t have separate forms, delay signing until you get them.
2. Never let staff fill out financing apps. Even if they say it’s “easier,” insist on doing it yourself. Read the fine print.
3. Never give your credit card before emergency care. You have the legal right to get treated first. If they insist, ask to speak to a supervisor or file a complaint with the New York State Department of Health.
4. Ask if you’re using a healthcare financing product. If you’re paying with a regular card, ask: “Will this be treated as medical debt?” If they say no, you’re on your own financially.
5. Keep copies of all signed forms. If something goes wrong later, you’ll need proof you followed the rules.

What Providers Must Do

Hospitals and clinics in New York are required to:

• Revise all intake and consent forms by October 20, 2024
• Train every staff member - front desk, nurses, billing - on the new rules
• Provide written warnings every time a patient uses a traditional credit card
• Keep records of compliance for at least six years

Many providers are still struggling with this. The state issued guidance just two days before the laws took effect, leaving little time to adapt. That’s why confusion still exists - especially around Section 18-c’s suspension.

What’s Next for Patient Protection?

New York is leading the way. Other states are watching. Experts predict that by 2026, at least half of U.S. states will adopt similar rules - especially around credit card disclosures and consent separation.

The federal government is also moving. The CFPB’s removal of medical debt from credit reports is a sign that regulators now see medical debt as a systemic problem - not just a personal finance issue.

For patients, this means one thing: your rights are expanding. But you still have to know them. Don’t assume your provider has your best interest at heart. Ask questions. Say no. Walk away if needed. These laws exist to give you power - use it.

Frequently Asked Questions