Maryland Group Calls on State Senate to Take Action on Medical Debt

Maryland Consumer Rights Coalition calls for passage of medical debt relief bill

The Maryland Consumer Rights Coalition (MCRC) is calling on the Maryland Senate to take action to pass HB 694, legislation that seeks to provide relief to consumers who have medical debt despite having been eligible for free care at the time they received services.

According to a state report on medical debt:

60% of patients who qualified for free hospital care were instead sent to debt collection. Collectively, these low-income patients paid $120 million to hospitals over two years despite the fact that they qualified for free care. 

If passed, the legislation would require state agencies and Maryland hospitals to:

1. Establish a process to identify patients that should have received free care but were wrongfully charged and paid hospitals for this care between 2017-2021
2. Provide a refund to these patients that overpaid and who should never have been billed in the first place. 
3. Protect patient confidentiality in accordance with HIPPA and establish a process to safely reach out to patients who use an alternate address
4. Report on progress to the House Health & Government Operations Committee and Senate Finance Committee annually. It also provides the opportunity for the stakeholders to identify and propose implementing legislation in 2023 should it be necessary to identify and refund patients.

According to an MCRC poll, 53% of respondents who couldn’t afford to pay an unexpected $500 medical bill stated that they have delayed or avoided care because of concerns about costs. As new COVID variants emerge, it is critical that medical debt doesn't stop patients from seeking care.

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