Maine establishes Medical Debt Relief Program for low-income residents

Maine has taken a significant step towards alleviating the burden of medical debt with the introduction of Senate Bill 902, which establishes a Medical Debt Relief Program aimed at residents struggling with healthcare costs. Introduced on March 21, 2025, the bill seeks to provide financial relief to individuals whose federal adjusted gross income does not exceed 400% of the federal poverty level.

The key provisions of the bill outline that eligible residents can receive assistance for medical debts incurred from necessary medical services, products, or devices. Notably, the program will cover debts that are in collection or have been sold by the original medical provider, ensuring that a broader range of individuals can benefit from this initiative. The Department of Professional and Financial Regulation will oversee the program, with the authority to purchase, cancel, or forgive qualifying medical debts.

One of the most impactful aspects of Senate Bill 902 is its provision that any medical debt forgiven under the program will not be counted as taxable income for state tax purposes. This measure aims to prevent further financial strain on individuals already facing economic challenges due to medical expenses.

While the bill has garnered support for addressing a pressing issue in healthcare affordability, it has also sparked debates regarding its potential economic implications. Critics express concerns about the long-term sustainability of funding such a program and its effects on healthcare providers. Proponents argue that reducing medical debt can lead to improved health outcomes and economic stability for families.

As the bill moves through the legislative process, its success could set a precedent for similar initiatives in other states, highlighting the growing recognition of medical debt as a critical public health issue. The first report on the program's effectiveness is expected by February 1, 2027, providing lawmakers with essential data to assess its impact and make necessary adjustments.