Sen. Bailey introduces bill to reduce the negative impact of medical debt, strengthening consumer protections for Mainers

AUGUSTA – On Tuesday, March 25, Sen. Donna Bailey, D-Saco, introduced a bill to prohibit the reporting of medical debt on consumer reports. The Legislature’s Health Coverage, Insurance and Financial Services Committee, which Sen. Bailey serves on as Senate chair, conducted a public hearing for LD 558, “An Act to Strengthen Consumer Protections by Prohibiting the Report of Medical Debt on Consumer Reports.” As introduced, the bill would prohibit a consumer reporting agency from reporting medical debt on an individual’s consumer report.

“As health care costs continue to rise faster than inflation and more Mainers struggle to meet their basic needs, we need to do what we can to protect Mainers who carry medical debt,” said Sen. Bailey. “This bill offers a straightforward solution —ban consumer reporting agencies from reporting medical debt on consumer reports. This would protect the nearly half of Maine families that have taken on medical debt in the past two years. Whether they are trying to rent an apartment, seek employment or take out a loan, no one should be punished for carrying medical debt.”

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 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 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 face further action in the committee.

###