Maryland 2025 Regular Session

Maryland House Bill HB405 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0405
6	6
7	7	HOUSE BILL 405
8	8	J3 5lr0988
9	9
10	10	By: Prince George’s County Delegation
11	11	Introduced and read first time: January 16, 2025
12	12	Assigned to: Health and Government Operations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Prince George’s County – Hospitals – Sale of Patient Debt 2
19	19
20	20	PG 402–25 3
21	21
22	22	FOR the purpose of authorizing a hospital to sell the medical debt of patients if the debt is 4
23	23	sold to Prince George’s County for the purpose of canceling the debt; and generally 5
24	24	relating to the sale of patient debt to Prince George’s County. 6
25	25
26	26	BY repealing and reenacting, without amendments, 7
27	27	Article – Health – General 8
28	28	Section 19–214.2(a) 9
29	29	Annotated Code of Maryland 10
30	30	(2023 Replacement Volume and 2024 Supplement) 11
31	31
32	32	BY repealing and reenacting, with amendments, 12
33	33	Article – Health – General 13
34	34	Section 19–214.2(b), (m), and (n) 14
35	35	Annotated Code of Maryland 15
36	36	(2023 Replacement Volume and 2024 Supplement) 16
37	37
38	38	BY adding to 17
39	39	Article – Health – General 18
40	40	Section 19–214.2(m) 19
41	41	Annotated Code of Maryland 20
42	42	(2023 Replacement Volume and 2024 Supplement) 21
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
45	45	That the Laws of Maryland read as follows: 23
46	46
47	47	Article – Health – General 24
48	48	2 HOUSE BILL 405
49	49
50	50
51	51	19–214.2. 1
52	52
53	53	(a) (1) Each hospital annually shall submit to the Commission: 2
54	54
55	55	(i) At times prescribed by the Commission, the hospital’s policy on 3
56	56	the collection of debts owed by patients; and 4
57	57
58	58	(ii) A report including: 5
59	59
60	60	1. The total number of patients by race or ethnicity, gender, 6
61	61	and zip code of residence against whom the hospital, or a debt collector used by the hospital, 7
62	62	filed an action to collect a debt owed on a hospital bill; 8
63	63
64	64	2. The total number of patients by race or ethnicity, gender, 9
65	65	and zip code of residence with respect to whom the hospital has and has not reported or 10
66	66	classified a bad debt; and 11
67	67
68	68	3. The total dollar amount of the charges for hospital services 12
69	69	provided to patients but not collected by the hospital for patients covered by insurance, 13
70	70	including the out–of–pocket costs for patients covered by insurance, and patients without 14
71	71	insurance. 15
72	72
73	73	(2) The Commission shall post the information submitted under paragraph 16
74	74	(1) of this subsection on its website. 17
75	75
76	76	(b) The policy submitted under subsection (a)(1) of this section shall: 18
77	77
78	78	(1) Provide for active oversight by the hospital of any contract for collection 19
79	79	of debts on behalf of the hospital; 20
80	80
81	81	(2) [Prohibit] EXCEPT AS PROVIDED IN SUBSECTION (M) OF THIS 21
82	82	SECTION, PROHIBIT the hospital from selling any debt; 22
83	83
84	84	(3) Prohibit the charging of interest on bills incurred by self–pay patients 23
85	85	before a court judgment is obtained; 24
86	86
87	87	(4) Describe in detail the consideration by the hospital of patient income, 25
88	88	assets, and other criteria; 26
89	89
90	90	(5) Prohibit the hospital from reporting to a consumer reporting agency or 27
91	91	filing a civil action to collect a debt within 180 days after the initial bill is provided; 28
92	92
93	93	(6) Describe the hospital’s procedures for collecting a debt; 29
94	94
95	95	(7) Describe the circumstances in which the hospital will seek a judgment 30
96	96	against a patient; 31
97	97	HOUSE BILL 405 3
98	98
99	99
100	100	(8) In accordance with subsection (c) of this section, provide for a refund of 1
101	101	amounts collected from a patient or the guarantor of a patient who was later found to be 2
102	102	eligible for free care within 240 days after the initial bill was provided; 3
103	103
104	104	(9) If the hospital has obtained a judgment against or reported adverse 4
105	105	information to a consumer reporting agency about a patient who later was found to be 5
106	106	eligible for free care within 240 days after the initial bill was provided for which the 6
107	107	judgment was awarded or the adverse information was reported, require the hospital to 7
108	108	seek to vacate the judgment or strike the adverse information; 8
109	109
110	110	(10) Provide a mechanism for a patient to: 9
111	111
112	112	(i) Request the hospital to reconsider the denial of free or 10
113	113	reduced–cost care; 11
114	114
115	115	(ii) File with the hospital a complaint against the hospital or a debt 12
116	116	collector used by the hospital regarding the handling of the patient’s bill; and 13
117	117
118	118	(iii) Allow the patient and the hospital to mutually agree to modify 14
119	119	the terms of a payment plan offered under subsection (e) of this section or entered into with 15
120	120	the patient; and 16
121	121
122	122	(11) Prohibit the hospital from collecting additional fees in an amount that 17
123	123	exceeds the approved charge for the hospital service as established by the Commission for 18
124	124	which the medical debt is owed on a bill for a patient who is eligible for free or 19
125	125	reduced–cost care under the hospital’s financial assistance policy. 20
126	126
127	127	(M) (1) (I) A HOSPITAL MAY SELL DE BT OWED TO THE HOSPI TAL BY A 21
128	128	PATIENT FOR HOSPITAL SERVICES TO PRINCE GEORGE’S COUNTY FOR THE SOLE 22
129	129	PURPOSE OF CANCELING THE DEBT. 23
130	130
131	131	(II) THE CONTRACT BETWEEN THE HOSPITAL AND PRINCE 24
132	132	GEORGE’S COUNTY SHALL STATE TH AT THE SOLE PURPOSE OF THE SALE OF THE 25
133	133	DEBT IS TO CANCEL THE DEB T. 26
134	134
135	135	(III) THE PATIENT IS NOT RESPO NSIBLE TO THE HOSPIT AL OR 27
136	136	PRINCE GEORGE’S COUNTY FOR ANY AMOUNT OF THE DEBT THAT IS SOLD UNDER 28
137	137	THIS SUBSECTION OR A NY INTEREST, FEES, OR COSTS ASSOCIATED WITH THE DEBT 29
138	138	OR THE SALE. 30
139	139
140	140	(2) THE COMMISSION SHALL TREAT THE AMOUNTS OF PAYMENTS TO 31
141	141	HOSPITALS UNDER THIS SUBSECTIO N AS AN OFFSET TO UNCOMPENSATED CARE 32
142	142	AMOUNTS REPORTED BY HOSPITALS. 33
143	143	4 HOUSE BILL 405
144	144
145	145
146	146	(3) IF PRINCE GEORGE’S COUNTY CANCELS A PATI ENT’S DEBT 1
147	147	UNDER THIS SUBSECTIO N, PRINCE GEORGE’S COUNTY SHALL NOT IFY THE PATIENT 2
148	148	THAT THE DEBT HAS BE EN CANCELED . 3
149	149
150	150	[(m)] (N) The Commission shall review each hospital’s implementation of and 4
151	151	compliance with the hospital’s policies and the requirements of this section. 5
152	152
153	153	[(n)] (O) (1) On or before February 1 each year, beginning in 2023, the 6
154	154	Commission shall compile the information required under subsection (a) of this section and 7
155	155	prepare a medical debt collection report based on the compiled information. 8
156	156
157	157	(2) The report required under paragraph (1) of this subsection shall be: 9
158	158
159	159	(i) Made available to the public free of charge; and 10
160	160
161	161	(ii) Submitted to the Senate Finance Committee and the House 11
162	162	Health and Government Operations Committee in accordance with § 2–1257 of the State 12
163	163	Government Article. 13
164	164
165	165	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
166	166	October 1, 2025. 15