Bill > HB268

This bill strengthens hospital financial assistance and debt collection policies in Maryland by implementing several key provisions. The legislation requires hospitals to develop comprehensive financial assistance policies that provide free medically necessary care to patients with family incomes at or below 200% of the federal poverty level and reduced-cost care for patients with family incomes up to 500% of the federal poverty level. Hospitals must now reduce patients' out-of-pocket expenses by specific percentages based on their income level, ranging from 35% to 75%. The bill prohibits hospitals from filing civil actions to collect debts against patients with outstanding balances of $500 or less and extends the period before such actions can be taken from 180 to 240 days after the initial bill. Hospitals are also restricted from reporting adverse information to credit agencies, selling patient debt, or charging interest on bills for patients eligible for financial assistance. Additionally, the bill requires hospitals to provide clear notices about financial assistance policies, create uniform application processes, and offer income-based payment plans. The legislation aims to make healthcare more affordable and protect patients from aggressive debt collection practices, with these provisions set to take effect on October 1, 2025.