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Bill

Bill

HB 765

Hospitals - Medical Debt Collection - Sale of Patient Debt

2025 Regular Session Introduced by Tiffany Alston and 18 co-sponsors

Maryland restricts hospitals from selling patient medical debt to third-party collectors, limiting aggressive collection practices against patients struggling with medical bills.

Approved by the Governor - Chapter 750
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Bill Summary · HB 765

Legislative bill overview

HB 765 restricts Maryland hospitals' ability to sell patient medical debt to third-party debt collectors. The bill establishes requirements around debt collection practices and limits what hospitals can do with unpaid patient accounts, aiming to protect patients from aggressive collection tactics by outside agencies.

Why is this important

Medical debt is a leading cause of personal bankruptcy and financial hardship in the United States. By limiting hospital debt sales, the bill reduces patients' exposure to predatory collection practices, wage garnishment, and credit damage—particularly affecting low-income and vulnerable populations who struggle with medical bills.

Potential points of contention

  • Hospital revenue impact: Hospitals may argue the restrictions limit their ability to recover bad debts and offset uncompensated care costs, potentially affecting financial stability or care access
  • Definition and enforcement scope: Ambiguity about what constitutes prohibited debt sales or which hospitals are covered could create compliance challenges and legal disputes
  • Debt collection effectiveness: Third-party collectors often recover more aggressively; restrictions might reduce collections rates, shifting burden back to patients or forcing hospitals to pursue collections directly

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

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