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Committee hears bill to standardize hospital financial assistance, ban small‑debt suits and curb medical debt reporting
Summary
House Bill 268 would set minimum reduced‑cost floors for hospital financial assistance, prohibit reporting small medical debts to credit agencies and ban suits under $500; advocates said the bill would reduce medical debt harms, hospitals warned about fiscal impacts and scope.
Delegate Laura Chercuttian told the committee that House Bill 268 aims to tighten Maryland hospital financial assistance policies and reduce medical debt harms, proposing four main changes: set minimum floors for reduced‑cost care between 200% and 500% of the federal poverty level; prohibit hospitals from reporting medical debt to consumer credit agencies; ban lawsuits for medical debt under $500; and bar hospitals from using a "signed under seal" clause that extends statutes of limitation.
Supporters including Maryland Legal Aid, Economic Action Maryland and Progressive Maryland…
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