On March 10, 2025, the Maryland Legislature introduced Senate Bill 981, a significant piece of legislation aimed at addressing the growing issue of medical debt among patients. The bill mandates that hospitals provide clear and comprehensive written notice to patients before initiating legal action to collect unpaid hospital bills. This initiative seeks to protect patients from aggressive debt collection practices and ensure they are informed of their rights and available resources.

Key provisions of Senate Bill 981 require hospitals to send a notice at least 45 days prior to filing a lawsuit for debt collection. This notice must be dispatched via certified and first-class mail and must be written in simplified language, printed in at least 10-point type. The notice is designed to include essential information such as the hospital's contact details, the total amount owed, and a recommendation for patients to seek debt counseling services. Additionally, it must provide information about the hospital's financial assistance policy and resources available through the Health Education Advocacy Unit in the Office of the Attorney General.

The bill has sparked notable discussions among lawmakers and stakeholders. Proponents argue that it is a necessary step to alleviate the burden of medical debt on patients, particularly those from low-income backgrounds who may struggle to understand complex billing processes. Critics, however, express concerns about the potential administrative burden on hospitals and the implications for their financial stability.

The economic implications of Senate Bill 981 could be substantial. By requiring hospitals to provide clearer communication and support for patients facing financial difficulties, the bill may help reduce the number of lawsuits filed against patients, thereby fostering a more compassionate approach to medical billing. Socially, it aims to empower patients by ensuring they are aware of their rights and the resources available to them, potentially leading to better health outcomes and financial stability.

As the bill progresses through the legislative process, its future remains uncertain. Experts suggest that if passed, it could set a precedent for similar legislation in other states, reflecting a growing recognition of the need for reform in the healthcare billing system. The Maryland Legislature will continue to deliberate on the bill, with further discussions anticipated in the coming weeks.