Maine Senate gives initial support to Sen. Tipping bill to reduce consumer medical debt

AUGUSTA — On Tuesday, April 9, the Maine Senate gave initial unanimous approval to a bill from Sen. Mike Tipping, D-Orono. As amended, LD 2115, “An Act Requiring Health Care Providers to Engage in Fair Practices When Selling Medical Debt,” would prohibit medical debt collectors from charging any interest on debt or fees in connection with the collection of debt that the debt collector knows is medical debt.

“It’s an all-too-common, heartbreaking thing: You enter a gas station, and you see an empty coffee can with a photo of a kid taped on the side of it. Some parent is hoping the community will drop a few coins or dollars into the can so that their child doesn’t have to miss or skip their next chemo radiation appointment. At the same time, the parents have already borrowed money from their friends and family, drained their savings, begged for a high-interest loan from the bank, and lost countless nights of sleep,” said Sen. Tipping. “When it comes to taking on medical debt, patients have a false choice between their financial stability or their health and well-being – or the health and well-being of a loved one.”

According to Consumers for Affordable Health Care, 100 million American adults have medical debt, totaling $195 billion in 2019. In Maine, 42 percent of households carried medical debt. Of that 42 percent, nearly all Mainers still have the debt.

As amended, the bill would also prohibit debt collectors from pursuing litigation to compel payment of medical debt without providing proof that the consumer was sent a written notice indicating that litigation may not be pursued when:

• the debt collector or collection agency knows the consumer’s household income is not more than 300% of the federal poverty guidelines;
• The debt collector or collection agency provided the consumer with at least 30 days to provide evidence that the consumer’s household income is not more than 300% of the federal poverty guidelines.

Additionally, it would prohibit debt collectors from making false, deceptive or misleading representations. This prohibition would apply when the collectors attempt to collect debt that the debt collector or collection agency knows is medical debt.

Finally, it would apply when the collectors try to obtain information about a consumer in relation to an attempt to collect medical debt that interest will accumulate on the debt principal, that a fee will be charged in connect with the debt, or that the debt collector will pursue litigation to compel payment of the debt.

The bill faces additional votes in the Senate and House.

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