Senate Bill 981, introduced in Maryland on March 11, 2025, aims to reform hospital billing practices and enhance financial protections for patients facing medical debt. The bill addresses critical issues surrounding the transparency of hospital charges and the accessibility of payment plans for patients, particularly those eligible for free or reduced-cost care.

One of the key provisions of Senate Bill 981 mandates that hospitals provide written information about installment payment plans to patients who incur medical debt. This information must be shared at various points, including before discharge, with the hospital bill, upon request, and in any written communication regarding debt collection. The bill also stipulates that hospitals cannot charge interest or fees on debts incurred by patients eligible for free or reduced-cost care, ensuring that financial burdens do not escalate for vulnerable populations.

Additionally, the bill allows hospitals to shorten the period for determining a patient's eligibility for free care from two years to as little as 30 days if the hospital can document a lack of cooperation from the patient or their guarantor in providing necessary information. This provision aims to streamline the process for hospitals while still protecting patients' rights.

The introduction of Senate Bill 981 has sparked notable discussions among lawmakers and healthcare advocates. Supporters argue that the bill is a significant step toward making healthcare more affordable and transparent, particularly for low-income patients. Critics, however, express concerns about the potential administrative burden on hospitals and the implications of the shortened eligibility determination period.

The economic implications of this bill could be substantial, as it seeks to alleviate the financial strain on patients while potentially impacting hospital revenue cycles. Experts suggest that if passed, the bill could lead to a more equitable healthcare system in Maryland, where patients are better informed about their financial responsibilities and have clearer pathways to manage their medical debts.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and its potential effects on both patients and healthcare providers in Maryland. The next steps will involve further discussions and possible amendments as the bill moves through the legislative chambers.