Consumer Protection Laws for Patients: What You Need to Know in 2026

Every year, millions of Americans are blindsided by medical bills they never agreed to pay-bills that show up after an emergency, a routine procedure, or even a simple doctor’s visit. In 2022, 74.6 million people in the U.S. carried medical debt, according to the Kaiser Family Foundation. Many didn’t realize they were signing away more than just consent for treatment-they were also agreeing to financial terms they didn’t understand. That’s changing. New laws, especially in New York, are forcing healthcare providers to be clearer, fairer, and more transparent when it comes to how they treat patients’ money and personal information.

Separate Consent for Treatment and Payment

Before October 2024, it was common practice for hospitals and clinics to bundle everything into one form. You’d sign a stack of papers at check-in: consent for treatment, permission to share your records, and agreement to pay any costs not covered by insurance-all in one signature. That’s no longer legal in New York.

Under Public Health Law Section 18-c, providers must now get two separate consents: one for your medical care and another for how they’ll collect payment. You can’t be forced to sign both at the same time. This change was made because too many patients didn’t realize they were agreeing to financing plans, credit applications, or payment arrangements just by signing a routine intake form.

The penalty for violating this rule? Up to $2,000 per incident. That’s not a small fine. It’s meant to stop providers from hiding financial traps inside paperwork that looks like standard procedure.

No More Filling Out Your Credit Applications for You

Have you ever been handed a CareCredit® application at the front desk and been told, “Just sign here, we’ll help you with the rest”? That’s now illegal in New York.

General Business Law Section 349-g makes it clear: healthcare providers can’t complete any part of a patient’s application for medical financing. They can answer your questions. They can explain what CareCredit® is. They can even hand you the form. But they can’t fill in your income, your signature, or your contact details-even if they say they’re “just helping.”

Why? Because when a provider fills out your application, they’re not just helping-they’re steering you toward a product that benefits them. Medical financing companies often pay providers commissions for each application they generate. That creates a conflict of interest. You might end up with a high-interest loan you didn’t fully understand, while the provider gets paid for pushing it.

Violations can cost providers up to $5,000 per offense. And yes, the state is watching. Audits are already happening.

Emergency Care Can’t Be Held Hostage for Your Credit Card

Imagine you break your arm. You go to the ER. The staff says, “We need your credit card on file before we treat you.” That’s not just rude-it’s now illegal under General Business Law Section 519-a.

This law bans providers from requiring credit card preauthorization or keeping your card on file before giving you emergency or medically necessary care. Even if you’re uninsured, they can’t refuse to treat you until you hand over your card details.

There’s another layer here: if you do pay with a regular credit card, you lose key protections. Medical debt from healthcare-specific financing (like CareCredit®) is covered by state and federal rules that prevent wage garnishment, liens on your home, or damage to your credit score. But if you use a regular Visa or Mastercard? Those protections vanish. You’re treated like any other consumer debt.

That’s why providers now have to warn you in writing every time you use a traditional credit card for medical payments. The notice must clearly say: “Using a regular credit card for medical services may expose you to higher interest rates and fewer debt protections than healthcare-specific financing.”

How This Compares to Federal Laws

You’ve probably heard of the No Surprises Act, which took effect in January 2022. That law stops surprise bills from out-of-network providers. If you go to an in-network hospital but get treated by an out-of-network anesthesiologist, you shouldn’t get stuck with a huge bill.

But the No Surprises Act doesn’t touch the financial practices we’ve just discussed. It doesn’t stop providers from asking you to sign a combined consent form. It doesn’t stop them from helping you fill out a CareCredit® application. It doesn’t stop them from asking for your credit card before treatment.

New York’s laws go further. They target the everyday financial traps patients face-even inside in-network care. That’s why legal experts call them some of the strongest patient protection laws in the country.

The Consumer Financial Protection Bureau (CFPB) also made a major move in 2024: it banned medical debt from appearing on credit reports. That’s huge. Before this, a $300 unpaid bill for a lab test could tank your credit score. Now, it can’t. But this rule only applies to debt reported to credit bureaus. It doesn’t stop collectors from calling you, suing you, or putting liens on your property. New York’s laws help fill those gaps.

What This Means for Patients

If you’re a patient in New York, here’s what you can expect now:

• You’ll get two separate forms at your appointment: one for treatment, one for payment.
• No one will fill out your financing application for you-even if they say they’re “just helping.”
• You can’t be denied emergency care because you don’t have a credit card on file.
• If you pay with a regular credit card, you’ll get a written warning about the risks.
• You have the right to ask for a copy of your signed consent forms.

You don’t have to accept anything you don’t understand. If a provider pressures you to sign something quickly, pause. Ask for time. Ask for a copy to take home. You’re not obligated to make financial decisions in a waiting room under stress.

What This Means for Providers

For doctors, clinics, and hospitals, these laws mean major changes. Staff training is no longer optional. Forms must be redesigned. Policies must be updated. Records must be kept to prove compliance.

Many providers are struggling. The New York State Department of Health released its official guidance just two days before the laws took effect. That gave clinics less than 48 hours to retrain staff, update forms, and change workflows.

Some parts of the law are still unclear. For example, Public Health Law Section 18-c was suspended in August 2025, creating confusion about whether separate consent is still required. Until further notice, providers are advised to assume the rule is still in effect. The risk of being fined is too high to ignore.

The bottom line: compliance is expensive, but non-compliance is costlier. Fines add up fast. And reputational damage? That’s harder to fix.

What’s Next?

New York isn’t alone in this push. Other states are watching closely. Legal experts predict that within the next two years, similar laws will appear in California, Illinois, and Massachusetts. The CFPB’s credit report ban and New York’s consent rules are setting a new national standard.

The trend is clear: medical care shouldn’t come with hidden financial traps. Patients deserve to know exactly what they’re signing. They deserve to be treated with dignity-not as a source of revenue.

If you’re in New York, know your rights. If you’re elsewhere, ask your provider: “Do you use separate consent forms for treatment and payment?” If they don’t know what you’re talking about, they might not be following the law-even if it’s not in your state yet.

This isn’t just about paperwork. It’s about power. Who controls the conversation when you’re sick and vulnerable? For too long, it was the provider. Now, it’s starting to shift-back to you.