Committee unanimously endorses Sen. Bailey bill to strengthen Maine’s landmark medical debt law

AUGUSTA — Today, the Legislature’s Health Coverage, Insurance and Financial Services Committee gave its unanimous, bipartisan support to 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,” seeks to expand protections for Mainers with medical debt.

“With this unanimous, bipartisan support, my colleagues and I are sending a clear message that we remain committed to further reducing the harmful impact of medical debt on Mainers,” said Sen. Bailey. “People can rarely, if ever, plan for a medical emergency. When they receive the care they need, whether it be an operation, surgery or treatment, they should not have to worry about losing the roof over their heads or the wages from their employers. Instead, they should be able to focus on healing and getting back on their feet.”

Currently, a debt collection agency can sue a person with medical debt and, with a court order, recover the money owed to them 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.”

In the coming weeks, LD 2129 will face additional votes in the Senate and House.

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