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MarylandHB 10202025 Regular SessionHouseWALLET

Consumer Protection - Credit Reporting - Medical Debt (Fair Medical Debt Reporting Act)

Sponsored By: Julie Palakovich Carr (Democratic)

Signed by Governor

Commercial Law - Consumer ProtectionHealth Care Facilities and RegulationAgents and BrokersCivil Actions -see also- Small ClaimsConsumer ProtectionContracts -see also- ProcurementCreditDebt Collection -see also- Attachments and GarnishmentsDebt ManagementDisclosureDrugs -see also- Cannabis; ControlDangSubst; Pharm; etc.Emergency Medical Services -see also- Ambul; RescSqdHealth Care Facilities -see also- Clinics; Hospices; etcHospitals -see also- Clinics; State HospitalsMedical Equipment and DevicesMedical TreatmentsPrices -see also- Consumer Price Index

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Free-care patients get refunds and protections

Beginning October 1, 2025, Maryland hospital policies must provide refunds when patients or guarantors qualify for free care within 240 days after the first bill. The refunds cover amounts already collected. Hospitals must also seek to undo related court judgments or remove adverse information they reported about that bill. For patients eligible for free or reduced-cost care, policies must bar extra fees above the state-approved hospital service charge.

Hospital patients get payment plan safeguards

Beginning October 1, 2025, Maryland hospitals must give patients with medical debt written information about installment plans. Patients count as compliant with an income-based plan after making at least 11 scheduled monthly payments in 12 months. After a missed payment, patients must contact the facility and identify a plan to make it up within one year. Facilities may waive additional missed payments in a 12-month period and keep patients in the plan without collection referrals or legal action. Hospitals must also provide ways to challenge denied free or reduced-cost care, complain about bill handling, and change payment terms by mutual agreement.

Medical debt stays off credit reports

Beginning October 1, 2025, credit reporting agencies cannot report or keep medical debt information, no matter when the debt arose. Covered debt includes bills owed to medical providers or their agents, including paid bills and bills not yet due. Ordinary credit-card debt is excluded, but health-care-only credit cards are covered. Credit decision-makers cannot use medical debt information from consumer reports to judge creditworthiness. Covered providers and their agents cannot disclose medical debt to credit agencies; contracts to buy or collect it must ban disclosure. Contracts entered into on or after October 1, 2025, without that clause are void and unenforceable. Hospitals must instruct agencies to delete earlier adverse reports by November 1, 2025, and delete reports within 60 days after a successful appeal or reconsideration. Hospitals must also notify agencies that received earlier adverse reports within 60 days after a patient fulfills the payment obligation.

Hospital patients get collection lawsuit delays

Beginning October 1, 2025, Maryland hospitals must wait at least 180 days after the first bill before suing for nonpayment. Their policies must also bar adverse credit reporting during that period; the separate medical-debt reporting ban still applies afterward. Hospitals cannot sue or send a bill to a debt collector if they received federally required notice of a pending insurance appeal or review within the past 60 days. That pause also applies if the hospital completed a properly submitted request to reconsider denied free or reduced-cost care within the past 60 days.

Hospitals face stricter debt collection rules

Beginning October 1, 2025, Maryland hospitals cannot sell medical debt or charge self-pay patients interest before a court judgment. Their collection policies must include active oversight of collection contracts and explain how patient income, assets, and other factors are considered. Policies must describe collection steps and when hospitals seek judgments. Hospitals must submit their policies annually to the Maryland Health Care Commission, along with counts of patients sued and classified or not classified as bad debt, broken down by race and ethnicity, gender, and ZIP code. They must also report total unpaid hospital charges, including insured patients’ out-of-pocket costs and uninsured patients’ charges.

Sponsors & Cosponsors

Sponsor

  • Julie Palakovich Carr

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 243 • No: 73

House vote • 4/7/2025

Third Reading Passed

Yes: 102 • No: 37 • Other: 1

Senate vote • 4/4/2025

Third Reading Passed

Yes: 40 • No: 3

House vote • 3/6/2025

Third Reading Passed

Yes: 101 • No: 33 • Other: 5

Actions Timeline

  1. Approved by the Governor - Chapter 121

    4/22/2025

  2. Passed Enrolled

    4/7/2025House

  3. Third Reading Passed (102-37)

    4/7/2025House

  4. House Concurs Senate Amendments

    4/7/2025House

  5. Third Reading Passed (40-3)

    4/4/2025Senate

  6. Second Reading Passed with Amendments

    4/4/2025Senate

  7. Favorable with Amendments {313123/1 Adopted

    4/4/2025Senate

  8. Favorable with Amendments Report by Finance

    4/4/2025Senate

  9. Referred Finance

    3/7/2025Senate

  10. Third Reading Passed (101-33)

    3/6/2025House

  11. Second Reading Passed with Amendments

    3/4/2025House

  12. Favorable with Amendments {763627/1 Adopted

    3/4/2025House

  13. Favorable with Amendments Report by Economic Matters

    3/3/2025House

  14. Hearing 2/18 at 1:00 p.m.

    2/4/2025House

  15. First Reading Economic Matters

    2/3/2025House

Bill Text

  • Enacted

    4/22/2025

    PDF

  • Enrolled

    4/7/2025

    PDF

  • Third Reading

    3/4/2025

    PDF

  • First Reading

    2/3/2025

    PDF

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