Bill > SB614

This bill aims to provide consumer protection by significantly limiting how medical debt can be reported and used in credit determinations. The bill redefines "medical debt" and imposes strict restrictions on consumer reporting agencies, preventing them from including any adverse information related to medical debt in consumer reports, regardless of when the debt was incurred. Specifically, agencies cannot create reports containing negative medical debt information or maintain files with such details. Additionally, the bill prohibits entities from using medical debt information when assessing a consumer's creditworthiness. For hospitals, the legislation mandates new debt collection policies, including a requirement to provide installment payment plans, prohibit debt selling, and prevent reporting adverse information to credit agencies within 180 days of the initial bill. Hospitals must also submit annual reports detailing their debt collection practices, including patient demographics and collection actions. The bill requires hospitals to have mechanisms for patients to request reconsideration of debt and provides protections for patients who might be eligible for free or reduced-cost care. These provisions will take effect on October 1, 2025, and aim to protect consumers from potentially damaging medical debt reporting practices.

Budget and Finance, Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0614?ys=2025RS