Sen. Bailey bill to strengthen Maine’s landmark medical debt law signed into law

The bill builds on the Senator’s law that bans medical debt from consumer reports.

AUGUSTA — On Monday, April 6, Gov. Janet T. Mills signed into law a bill from Sen. Donna Bailey, D-Saco. LD 2129, “An Act to Strengthen Consumer Protections by Prohibiting Liens on Principal Residences and Wage Garnishments for Medical Debt,” expands protections for Mainers with medical debt.

“Medical debt continues to hurt hardworking Maine families who, through no fault of their own, take on debt for seeking medical care — often for a life-changing diagnosis or for a life-threatening emergency,” said Sen. Bailey. “With the signing of this bill, we are taking another critical step to protect Mainers from the harmful impact of this debt. It is a part of our plan to help folks breathe a little easier, so they can focus on their healing and recovery.”

Currently, a debt collection agency can sue a person with medical debt and, with a court order, recover money by placing a lien on the person’s home or garnishing their wages. Several states, including Delaware, New York, North Carolina and Virginia, already have the strongest protections for patients with medical debt from having liens placed on their homes or having their wages garnished.

In testimony in support of the bill, the American Cancer Society Center Cancer Action Network and Blood Cancer United spoke to the particularly devastating impact of medical debt on cancer patients and survivors: “Cancer patients are especially vulnerable. Nearly half of cancer survivors report carrying medical debt related to their treatment due to repeated care, high cost-sharing and lost wages. Medical debt is not a reflection of personal failure but rather a systemic problem in our health care system. Addressing medical debt is crucial to accomplishing our collective mission of ending cancer as we know it. Individuals must first have access to quality, affordable health insurance coverage, and policies are also needed to reduce the impact of medical debt on individuals and families.”

As non-emergency legislation, LD 2129 will go into effect 90 days after the Legislature adjourns.

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