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Bill

SB 981

Hospitals - Financial Assistance and Collection of Debts - Policies

2025 Regular Session Introduced by Pam Beidle and 9 co-sponsors

Maryland hospitals must provide transparent financial assistance to uninsured patients and restrict aggressive debt collection methods to reduce medical debt burdens on vulnerable populations.

Approved by the Governor - Chapter 694
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Bill Summary · SB 981

Legislative bill overview

SB 981 establishes comprehensive requirements for Maryland hospitals' financial assistance policies and debt collection practices. The bill mandates that hospitals provide transparent financial aid to uninsured and underinsured patients, limits aggressive debt collection methods, and requires hospitals to conduct reasonable financial assessments before pursuing collection actions.

Why is this important

Medical debt is a leading cause of personal bankruptcy in the United States, and aggressive hospital collection practices can devastate vulnerable populations. This legislation aims to protect patients from predatory debt collection while ensuring hospitals maintain operational sustainability—balancing consumer protection with healthcare provider viability.

Potential points of contention

  • Implementation costs: Hospitals may argue that compliance infrastructure, financial counseling staff, and policy administration create operational burdens that could increase overall healthcare costs
  • Financial assistance thresholds: Defining who qualifies for aid and at what income levels involves tradeoffs between protecting the poorest patients versus broader assistance eligibility
  • Collection limitations: Restricting debt collection methods (liens, wage garnishments, etc.) reduces hospitals' ability to recover debts, potentially affecting their financial health and service capacity

Compiled from official sources — confirm details with the bill’s official record.

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