Bill Positions

Bill Number: SB 328

Bill Title: Hospitals - Financial Assistance and Debt Collection

Bill Sponsor(s): Senators Middleton and Della

Subject: Health Care

Committee: FIN

Bill Summary: This legislation will impose further standards on hospitals for financial assistance and debt collection, including: (1) requiring reduced cost care for patients with family incomes under 500% of the Federal Poverty Level for which medical debt exceeds 25% of family income; and (2) Prohibiting hospitals from forcing the sale of a primary residence to collect a hospital debt. The bill was amended in the Senate to allow hospitals to request the HSCRC to approve a different income threshold for financial assistance based on factors specific to the hospital's area, patient mix and experience.

History: The Chamber supported the enactment of SB 776 and HB 1069 in 2009 that established more uniform policies for financial assistance and debt collection policies by hospitals. The legislation also established a workgroup of stakeholders to report back with further recommended actions. In 2010 SB 328 was enacted as Chapter 60.

Chamber Position: Support

Position Summary: The Chamber supports reasonable standards for financial assistance and debt collection practices by hospitals and the oversight by the HSCRC of those practices. However, businesses have a vital concern that bad debt and uncompensated care be minimized so that businesses are not unnecessarily burdened with higher hospital rates and health care costs. As amended by the Senate, the bill allows hospitals to submit policies for medical hardship to the HSCRC based on the demographics of their service area.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.