A sudden illness should not ruin your financial future. However, many Maryland residents face aggressive billing while they recover. This situation often leads to fear about credit scores.
Fortunately, 2025 updates to state law created a stronger shield for patients. If you worry about unpaid bills, you must understand the new timelines. These rules create a barrier between a hospital bill and your credit report.
A waiting period for lawsuits
In the past, unpaid medical bills escalated to legal action quickly. Now, House Bill 268 gives consumers more time. Hospitals in Maryland face stricter limits on when they can sue.
Most patients now get a 240-day window after the first bill. The hospital must wait for this period to pass before filing a collection lawsuit. This rule ensures patients have time to apply for financial assistance. Also, hospitals generally cannot sue for medical debts of $500 or less.
New credit reporting bans
The most significant change involves credit reports. Recent legislation stops health care providers and debt collectors from sharing medical debt information with consumer reporting agencies. This change prevents medical debt from harming your credit score. It ensures that collectors cannot force you to pay inaccurate bills just to save your credit rating.
Requirements for financial assistance
Hospitals must follow strict standards before they pursue aggressive collection actions. Maryland law requires hospitals to provide notice of financial assistance and determine eligibility if you apply. Key protections include:
- Income-based aid: Hospitals must offer free care to patients who meet specific income guidelines.
- Opportunity to apply: You generally cannot face a lawsuit until the hospital gives you time and information to apply for aid.
- Prohibited liens: Debt collectors cannot use a money judgment for medical debt to place a lien on your primary home.
These safeguards ensure that hospitals treat patients fairly before any legal action begins.
Verifying the debt details
Billing departments make mistakes. A collection notice does not prove the debt is valid. It also does not mean the collector followed the law. Do not ignore the notices if you face harassment from debt collectors. However, try not to panic. An experienced attorney can review the facts to see if a collector violated these new protections.