On March 11, 2025, the Maryland Legislature introduced Senate Bill 981, a significant piece of legislation aimed at enhancing financial assistance for patients in acute and chronic care hospitals. The bill seeks to address the pressing issue of healthcare affordability, particularly for individuals lacking adequate health insurance coverage.

The primary purpose of Senate Bill 981 is to mandate that all acute and chronic care hospitals in Maryland develop comprehensive financial assistance policies. These policies are designed to provide free or reduced-cost medically necessary care to patients based on their income levels. Specifically, the bill stipulates that patients with family incomes at or below 200% of the federal poverty level must receive free care, while those with incomes above this threshold but below 500% will have access to reduced-cost care and payment plans.

Key provisions of the bill include the requirement for hospitals to reassess a patient's financial situation within 240 days of the initial bill, ensuring that any changes in circumstances are taken into account. Additionally, the legislation establishes a mechanism for patients to appeal denials of financial assistance, with support from the Health Education and Advocacy Unit.

Debate surrounding Senate Bill 981 has highlighted concerns regarding the potential financial impact on hospitals, particularly smaller facilities that may struggle to absorb the costs associated with expanded financial assistance. Opponents argue that while the intent is noble, the bill could lead to increased financial strain on healthcare providers, potentially affecting the quality of care.

Supporters of the bill, including various healthcare advocacy groups, emphasize its importance in promoting equitable access to healthcare services. They argue that the legislation is a necessary step toward addressing the growing issue of medical debt and ensuring that low-income patients receive the care they need without the burden of overwhelming costs.

The implications of Senate Bill 981 are significant, as it not only aims to alleviate financial barriers for vulnerable populations but also sets a precedent for how hospitals in Maryland approach patient care and financial assistance. Experts suggest that if passed, the bill could lead to a broader discussion on healthcare reform and the need for systemic changes to ensure that all individuals have access to necessary medical services.

As the legislative process continues, stakeholders will be closely monitoring the bill's progress and its potential impact on both patients and healthcare providers across the state.