On March 10, 2025, the Maryland Legislature introduced Senate Bill 981, a significant piece of legislation aimed at reforming hospital debt collection practices. The bill seeks to address concerns regarding the financial burden placed on patients, particularly those from marginalized communities, by mandating transparency and accountability in how hospitals manage and collect debts.

Senate Bill 981 requires hospitals to report detailed demographic data on patients against whom they have filed debt collection actions. This includes information categorized by race, ethnicity, gender, and zip code. Additionally, hospitals must disclose the total dollar amount of charges for services rendered but not collected, encompassing both insured and uninsured patients. This data will be made publicly available on the Maryland Commission's website, promoting transparency in hospital billing practices.

Key provisions of the bill include prohibiting hospitals from selling debts and from charging interest on bills incurred by self-pay patients before a court judgment is obtained. Furthermore, the bill stipulates that hospitals cannot file civil actions to collect debts within 240 days of the initial bill being issued and prohibits such actions for debts of $500 or less. These measures aim to provide patients with a fairer opportunity to address their medical bills without the immediate threat of legal action.

The introduction of Senate Bill 981 has sparked notable debates among lawmakers and stakeholders. Proponents argue that the bill is a necessary step toward protecting vulnerable populations from aggressive debt collection practices that disproportionately affect low-income individuals and communities of color. Critics, however, express concerns about the potential financial implications for hospitals, suggesting that the restrictions could hinder their ability to recover costs and maintain financial stability.

The economic implications of this bill could be significant, as it seeks to balance the financial interests of healthcare providers with the rights and protections of patients. Experts suggest that while the bill may initially pose challenges for hospitals, it could ultimately lead to a more equitable healthcare system by reducing the burden of medical debt on patients.

As Senate Bill 981 progresses through the legislative process, its potential impact on Maryland's healthcare landscape remains to be seen. The bill represents a growing recognition of the need for reform in hospital billing practices, reflecting broader national conversations about healthcare affordability and access. The outcome of this legislation could set a precedent for similar reforms in other states, highlighting the ongoing struggle to ensure that healthcare is accessible and fair for all.