Maine Senate sends Sen. Bailey bill to protect consumers from the negative impacts of medical debt to Governor’s desk
AUGUSTA — On Monday, June 2, the Maine Senate sent a consumer protections bill from Sen. Donna Bailey, D-Saco, to the Governor’s desk. 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. 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.
“With this unanimous, bipartisan vote, the Maine Legislature took a bold step to strengthen consumer protections for Mainers with medical debt,” said Sen. Bailey. “Health care costs can be high, and medical debt can be a burden. It pinches the pocketbook. But, once this bill becomes law, Mainers will have some relief. No matter their ability to pay for a medical procedure or surgery, they can still rent an apartment, buy a car or go back to school.”
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.
LD 558 now goes to the Governor’s desk, where she has 10 days to sign, allow it to become law without her signature or veto it.
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