In unanimous vote, committee supports Bailey bill to protect consumers from the negative impacts of medical debt
AUGUSTA – On Wednesday, April 9, the Legislature’s Health Coverage, Insurance and Financial Services Committee voted unanimously of those present and voting, 11-0, in favor of a bill from Sen. Donna Bailey, D-Saco. As introduced, LD 558, “An Act to Strengthen Consumer Protections by Prohibiting the Report of Medical Debt on Consumer Reports,” would prohibit a consumer reporting agency from reporting medical debt on an individual’s consumer report. During the work session, the Committee amended the bill to also prohibit medical providers and debt collection agencies from reporting medical debt to any consumer reporting agency.
“As far as I know, no one chooses to have emergency gallbladder surgery,” said Sen. Bailey. “This bill would protect Maine consumers who have no choice but to take on medical debt through no fault of their own. The high costs of health care and prescription drugs, as well as the resulting debt incurred, should not determine a patient’s ability to carry credit or pay off a loan. It is critical that we protect Mainers from unfair penalties for getting the health care they need.”
Consumers for Affordable Health Care has 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 medical debt, and a lower credit score can negatively impact someone’s ability to rent or otherwise obtain housing. The majority 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 dragged into costly litigation by debt collectors.
The Legislature also considered a proposal from former Senate President Troy Jackson, D-Allagash, to better protect patients from predatory medical credit card companies by putting basic consumer protections in place. The measure passed the Senate with bipartisan support, but was unsuccessful in the House of Representatives.
In the coming weeks, LD 558 will be reported out of the Committee and go to the House and Senate chambers for votes.
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