Gov. Mills signs Sen. Bailey bill to protect consumers from the negative impacts of medical debt
AUGUSTA — Last month, Gov. Janet T. Mills signed a consumer protections bill from Sen. Donna Bailey, D-Saco, into law. LD 558, “An Act to Strengthen Consumer Protections by Prohibiting the Report of Medical Debt on Consumer Reports,” will prohibit a consumer reporting agency from listing medical debt on an individual’s consumer report. It will also prohibit medical providers and debt collection agencies from reporting medical debt to any consumer reporting agency.
“I am proud to have worked on such a big issue that received clear, bipartisan support in the Health Coverage, Insurance and Financial Services Committee, as well as the entire Maine Legislature,” said Sen. Bailey. “Now that the Governor has signed this important bill into law, Mainers with medical debt will have some peace of mind, knowing that it will not hurt their ability to apply for an apartment or a mortgage. I also hope that, unburdened by one of the most harmful impacts of medical debt, they will worry less when they go to the doctor.”
Consumers for Affordable Health Care released data that shows that nearly half of Maine families have taken on medical debt in the last two years. In addition, one out of four Maine families with medical debt owe $5,000 or more.
More than half of Mainers with medical debt report that their credit score has been negatively affected by the debt, and a lower credit score can negatively impact someone’s ability to rent or otherwise obtain housing. The majority of those surveyed have indicated that their ability to obtain employment or loans has also been negatively impacted by their debt.
In the 131st Legislature, Maine lawmakers adopted legislation from Sen. Mike Tipping, D-Orono, that targets exploitative debt collection practices. That new law prohibits debt collectors from tacking on additional fees or employing deceptive, false or misleading representations. It also protects folks who are struggling financially from being harassed by debt collectors.
As non-emergency legislation, the law will go into effect on Sept. 24, 2025, which is 90 days after the First Session of the 132nd Maine State Legislature adjourned sine die.
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