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Bill

SB 349

Medical Debt - Complaints for Money Judgment and Real Property Liens

2025 Regular Session Introduced by Sara Love

Maryland law restricts medical debt lawsuits and real property liens, protecting consumers from collection tactics that can lead to wage garnishment and foreclosure.

Approved by the Governor - Chapter 497
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Bill Summary · SB 349

Legislative bill overview

SB 349 restricts creditors' ability to pursue medical debt collection through lawsuits and property liens in Maryland. The bill establishes protections for consumers facing medical debt by limiting court judgments and preventing creditors from placing liens on real property for medical debts.

Why is this important

Medical debt is the leading cause of personal bankruptcy in the United States, and this legislation directly addresses a major source of financial hardship for Marylanders. By limiting collection mechanisms, the bill reduces the risk of wage garnishment, asset seizure, and foreclosure resulting from unpaid medical bills—issues that often stem from unexpected health crises rather than carelessness.

Potential points of contention

  • Hospital and provider concerns: Healthcare facilities argue that debt collection restrictions reduce their ability to recover costs and may increase uncompensated care expenses, potentially affecting service availability or raising costs for other patients
  • Creditor and debt buyer opposition: Medical debt purchasers and collection agencies lose a significant enforcement tool, which may reduce their willingness to purchase or service Maryland medical debt portfolios
  • Implementation questions: The bill's precise scope regarding what constitutes "medical debt," timelines for enforcement, and exemptions for certain types of healthcare providers remain subjects for regulatory clarification

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

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