EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0405*
HOUSE BILL 405
J3 5lr0988
By: Prince George’s County Delegation
Introduced and read first time: January 16, 2025
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Prince George’s County – Hospitals – Sale of Patient Debt 2
PG 402–25 3
FOR the purpose of authorizing a hospital to sell the medical debt of patients if the debt is 4
sold to Prince George’s County for the purpose of canceling the debt; and generally 5
relating to the sale of patient debt to Prince George’s County. 6
BY repealing and reenacting, without amendments, 7
Article – Health – General 8
Section 19–214.2(a) 9
Annotated Code of Maryland 10
(2023 Replacement Volume and 2024 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Health – General 13
Section 19–214.2(b), (m), and (n) 14
Annotated Code of Maryland 15
(2023 Replacement Volume and 2024 Supplement) 16
BY adding to 17
Article – Health – General 18
Section 19–214.2(m) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2024 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Health – General 24
2 HOUSE BILL 405
19–214.2. 1
(a) (1) Each hospital annually shall submit to the Commission: 2
(i) At times prescribed by the Commission, the hospital’s policy on 3
the collection of debts owed by patients; and 4
(ii) A report including: 5
1. The total number of patients by race or ethnicity, gender, 6
and zip code of residence against whom the hospital, or a debt collector used by the hospital, 7
filed an action to collect a debt owed on a hospital bill; 8
2. The total number of patients by race or ethnicity, gender, 9
and zip code of residence with respect to whom the hospital has and has not reported or 10
classified a bad debt; and 11
3. The total dollar amount of the charges for hospital services 12
provided to patients but not collected by the hospital for patients covered by insurance, 13
including the out–of–pocket costs for patients covered by insurance, and patients without 14
insurance. 15
(2) The Commission shall post the information submitted under paragraph 16
(1) of this subsection on its website. 17
(b) The policy submitted under subsection (a)(1) of this section shall: 18
(1) Provide for active oversight by the hospital of any contract for collection 19
of debts on behalf of the hospital; 20
(2) [Prohibit] EXCEPT AS PROVIDED IN SUBSECTION (M) OF THIS 21
SECTION, PROHIBIT the hospital from selling any debt; 22
(3) Prohibit the charging of interest on bills incurred by self–pay patients 23
before a court judgment is obtained; 24
(4) Describe in detail the consideration by the hospital of patient income, 25
assets, and other criteria; 26
(5) Prohibit the hospital from reporting to a consumer reporting agency or 27
filing a civil action to collect a debt within 180 days after the initial bill is provided; 28
(6) Describe the hospital’s procedures for collecting a debt; 29
(7) Describe the circumstances in which the hospital will seek a judgment 30
against a patient; 31
HOUSE BILL 405 3
(8) In accordance with subsection (c) of this section, provide for a refund of 1
amounts collected from a patient or the guarantor of a patient who was later found to be 2
eligible for free care within 240 days after the initial bill was provided; 3
(9) If the hospital has obtained a judgment against or reported adverse 4
information to a consumer reporting agency about a patient who later was found to be 5
eligible for free care within 240 days after the initial bill was provided for which the 6
judgment was awarded or the adverse information was reported, require the hospital to 7
seek to vacate the judgment or strike the adverse information; 8
(10) Provide a mechanism for a patient to: 9
(i) Request the hospital to reconsider the denial of free or 10
reduced–cost care; 11
(ii) File with the hospital a complaint against the hospital or a debt 12
collector used by the hospital regarding the handling of the patient’s bill; and 13
(iii) Allow the patient and the hospital to mutually agree to modify 14
the terms of a payment plan offered under subsection (e) of this section or entered into with 15
the patient; and 16
(11) Prohibit the hospital from collecting additional fees in an amount that 17
exceeds the approved charge for the hospital service as established by the Commission for 18
which the medical debt is owed on a bill for a patient who is eligible for free or 19
reduced–cost care under the hospital’s financial assistance policy. 20
(M) (1) (I) A HOSPITAL MAY SELL DE BT OWED TO THE HOSPI TAL BY A 21
PATIENT FOR HOSPITAL SERVICES TO PRINCE GEORGE’S COUNTY FOR THE SOLE 22
PURPOSE OF CANCELING THE DEBT. 23
(II) THE CONTRACT BETWEEN THE HOSPITAL AND PRINCE 24
GEORGE’S COUNTY SHALL STATE TH AT THE SOLE PURPOSE OF THE SALE OF THE 25
DEBT IS TO CANCEL THE DEB T. 26
(III) THE PATIENT IS NOT RESPO NSIBLE TO THE HOSPIT AL OR 27
PRINCE GEORGE’S COUNTY FOR ANY AMOUNT OF THE DEBT THAT IS SOLD UNDER 28
THIS SUBSECTION OR A NY INTEREST, FEES, OR COSTS ASSOCIATED WITH THE DEBT 29
OR THE SALE. 30
(2) THE COMMISSION SHALL TREAT THE AMOUNTS OF PAYMENTS TO 31
HOSPITALS UNDER THIS SUBSECTIO N AS AN OFFSET TO UNCOMPENSATED CARE 32
AMOUNTS REPORTED BY HOSPITALS. 33
4 HOUSE BILL 405
(3) IF PRINCE GEORGE’S COUNTY CANCELS A PATI ENT’S DEBT 1
UNDER THIS SUBSECTIO N, PRINCE GEORGE’S COUNTY SHALL NOT IFY THE PATIENT 2
THAT THE DEBT HAS BE EN CANCELED . 3
[(m)] (N) The Commission shall review each hospital’s implementation of and 4
compliance with the hospital’s policies and the requirements of this section. 5
[(n)] (O) (1) On or before February 1 each year, beginning in 2023, the 6
Commission shall compile the information required under subsection (a) of this section and 7
prepare a medical debt collection report based on the compiled information. 8
(2) The report required under paragraph (1) of this subsection shall be: 9
(i) Made available to the public free of charge; and 10
(ii) Submitted to the Senate Finance Committee and the House 11
Health and Government Operations Committee in accordance with § 2–1257 of the State 12
Government Article. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2025. 15