Bill > SB981

This bill strengthens hospital financial assistance and debt collection regulations in Maryland by implementing several key provisions. The legislation requires hospitals to develop comprehensive financial assistance policies that provide free or reduced-cost care to patients based on their family income, with specific percentage reductions for patients at different income levels. Hospitals must now offer free medically necessary care to patients at or below 200% of the federal poverty level and provide sliding scale reductions for patients up to 500% of the federal poverty level. 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 legal action can be taken from 180 to 240 days after the initial bill. Additionally, the legislation mandates that hospitals provide clear notice about financial assistance policies, create uniform financial assistance applications, and implement income-based payment plans. The bill also restricts hospitals from reporting adverse information to credit agencies, selling patient debt, or taking certain aggressive collection actions like wage garnishment. Hospitals must now consider changes in a patient's financial circumstances within 240 days of the initial bill and have more stringent requirements for notifying patients about their financial assistance options. The legislation aims to make healthcare more accessible and prevent medical debt from becoming an overwhelming burden for patients.

Budget and Finance, Health and Social Services

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0981?ys=2025RS