Maine Senate gives initial support to Sen. Bailey bill to protect consumers from the negative impacts of medical debt

AUGUSTA — On Wednesday, May 28, the Maine Senate voted unanimously in favor of a bill from Sen. Donna Bailey, D-Saco. 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 the Senate Chair of the Legislature’s Health Coverage, Insurance and Financial Services Committee, I remain committed to strengthening consumer protections for Mainers,” said Sen. Bailey. “This bill protects Mainers with medical debt — which they often incur through no fault of their own — from an unfair practice. It is not right that unintended medical debt could deny someone the opportunity to buy a home, purchase a car or take out a loan. We need to do all we can to help working Mainers build their lives here. This bill gets us one step closer.”

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 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 days, LD 558 will face additional votes in the House and Senate.

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