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

Every year, millions of Americans face medical bills they never expected. Some get surprise charges from out-of-network doctors. Others are pressured to sign up for medical financing apps right after a diagnosis. And too many find their credit scores wrecked by hospital bills they couldn’t pay. That’s why consumer protection laws for patients have become essential-not just in theory, but in daily practice.

What Changed in New York in 2024?

On October 20, 2024, New York rolled out three new laws that flipped the script on how healthcare providers handle money and consent. These weren’t minor tweaks. They were full system overhauls designed to stop predatory practices that turned medical care into a financial trap.

One of the biggest changes? You can no longer sign one form that gives your doctor permission to treat you and to bill you. Before, hospitals and clinics would hand you a stack of papers at check-in. You’d sign everything at once-consent for surgery, permission for lab tests, and authorization to charge your card or set up a payment plan-all in one signature. Now, under Public Health Law Section 18-c, providers must get separate, clear consent for treatment and for payment. If they don’t, they face a $2,000 fine per violation.

But here’s the twist: as of August 2025, enforcement of Section 18-c was suspended. That doesn’t mean it’s gone. It means the state is still figuring out how to make it work without overwhelming clinics. Until then, providers are supposed to follow the spirit of the law: don’t trick patients into signing away financial rights while they’re stressed or in pain.

No More Sneaky Financing Apps

You’ve seen it: you’re in the ER after a fall. The nurse hands you a tablet. "Just sign here to apply for CareCredit®." It sounds helpful. But under General Business Law Section 349-g, that’s now illegal.

Healthcare providers can’t fill out any part of a medical financing application-not even helping you pick a plan or explaining interest rates. They can answer your questions. They can hand you the form. But you have to type everything yourself. Violations carry fines up to $5,000 per incident.

Why? Because these financing products-like CareCredit®, CareLending, or Health Finance Group-are structured differently than credit cards. If you use them, you get special protections: no wage garnishment, no liens on your home, and medical debt can’t be reported to credit bureaus. But if you just use your Visa or Mastercard? You lose all of that. You’re treated like any other consumer debt. That’s why New York made it harder for providers to steer you toward the wrong option.

Emergency Care Can’t Be Held Hostage

Imagine you’re rushed to the hospital after a car crash. You’re in pain. You can’t think straight. Then the billing office asks for your credit card number to "preauthorize" payment. That’s no longer allowed under General Business Law Section 519-a.

Providers can’t require you to give them your credit card before giving you emergency or medically necessary care. They also can’t keep your card on file without your written permission. And if you do pay with a traditional credit card, they must give you a clear warning: "Using a credit card for medical services may subject you to higher interest rates and remove your access to medical debt protections." This law closes a dangerous loophole. Federal rules like the No Surprises Act stop surprise bills from out-of-network providers. But they don’t protect you if you use your credit card to pay for care you thought was covered. New York’s law says: if you’re getting emergency care, you shouldn’t be forced into a financial decision under duress.

Federal vs. State: What’s the Difference?

The No Surprises Act, which started in January 2022, protects you from surprise bills. If you go to an in-network hospital but get treated by an out-of-network anesthesiologist? You still only pay your in-network rate. That’s federal law.

New York’s laws go further. They tackle what happens after you get care. They stop providers from pressuring you into financing. They force transparency about how payment methods affect your rights. They make sure you’re not signing away protections just because you’re tired, scared, or confused.

And while the federal government removed medical debt from credit reports in 2024, New York’s laws go beyond that. They prevent the problem from happening in the first place-by stopping the practices that turn medical bills into long-term financial disasters.

What This Means for You

If you’re a patient, here’s what you should do:

• Always ask: "Is this consent for treatment or payment?" If they’re combined, say no. Demand separate forms.
• If someone offers you CareCredit® or a similar product, ask: "Can I complete this myself?" If they try to help you fill it out, politely refuse.
• Never give your credit card before emergency care. If they insist, ask to speak to a supervisor or file a complaint with the New York State Department of Health.
• If you’re asked to pay with a credit card, request the written warning about risks. Keep a copy.
• Know your rights: medical debt from financing programs is protected. Debt from regular credit cards is not.

What This Means for Providers

Clinics and hospitals are scrambling to adapt. Many still use old intake forms. Staff are confused. Training hasn’t caught up. Some are ignoring the rules because they don’t understand the penalties.

But the cost of non-compliance is real. Fines add up fast. And patients are starting to push back. More are asking: "Why are you asking for my card before you even check my vitals?"

Providers must now:

• Redesign consent forms to separate treatment and payment.
• Train every front-desk employee on the new rules.
• Stop completing any part of medical financing applications.
• Provide written risk disclosures every time a patient uses a credit card.
• Keep records of compliance for at least six years.

What’s Next?

New York isn’t alone. The Consumer Financial Protection Bureau’s 2024 rule to remove medical debt from credit reports shows federal momentum. Experts predict other states will copy New York’s model-especially the credit card disclosure rules and the ban on preauthorization for emergencies.

Meanwhile, the suspension of Section 18-c creates uncertainty. Is it paused indefinitely? Will it come back with stronger enforcement? Providers and patients alike are watching. The state hasn’t said.

But one thing is clear: the era of treating medical care like a retail transaction is ending. Patients are no longer expected to sign away their financial rights just to get help. The system is changing. And if you know your rights, you can make sure you’re not left behind.

Common Questions About Patient Protection Laws