Bill > HB405

This bill modifies Maryland's Health - General code to allow hospitals in Prince George's County to sell patient medical debt exclusively to the county for the purpose of debt cancellation. Specifically, the bill creates a new provision that permits hospitals to sell patient debt to Prince George's County with the sole intent of canceling that debt. The contract between the hospital and the county must explicitly state this purpose, and importantly, the patient will not be responsible for any amount of the sold debt or associated interest, fees, or costs. The Maryland Health Care Commission will treat these payments to hospitals as an offset to uncompensated care amounts. When the county cancels a patient's debt, they are required to notify the patient of the debt cancellation. The bill maintains existing requirements for hospitals to submit annual reports about debt collection practices, including information about patient demographics and debt collection actions, and requires the Commission to review hospital compliance with these policies. The new provisions will take effect on October 1, 2025, providing hospitals and the county time to prepare for implementation.

Health and Social Services

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0405?ys=2025RS