Maine Legislature Offers New Way to Reign in Medical Debt

Every person gets sick or injured at some point in their lives. When these events are unexpected, they can saddle people with medical debt that’s difficult to manage.

Nearly half of Mainers carry some amount of medical debt, and over two-thirds say they are just one major medical bill away from financial ruin. Many people have to make difficult decisions between taking care of themselves and addressing other necessary expenses like their mortgage, car payments, or even groceries.

Exacerbating the problem are debt collection practices. If a patient cannot pay off their full bill within a brief period, hospitals will sell medical debt to collections agencies, often at a lower price than the total owed. Nearly one in three Mainers were contacted by a collection agency within the past two years, with 83% saying it was because of a hospital bill. Many of those contacted aren’t given a chance to discuss a payment plan with the hospital before then. 

The Maine Legislature is taking steps to address the imposed burden of medical debt with bills like LD 2115. Introduced by Senator Mike Tipping, the bill would bar hospitals from selling medical debt to collection agencies without first offering to sell it to the consumer at the same discounted rate. 

By not immediately selling to collection agencies, patients would have the chance to pay off that debt faster and with fewer hurdles. No more being hounded by collection agencies before there is even a fair chance to pay off the bill. And no more risk of damaged credit, which hurts Mainers’ chances of buying a home or a car. 

No one should have to worry about going bankrupt to get the care they need. That’s why we call on the Legislature to pass LD 2115.

New survey shows most Mainers support transparent hospital prices, limits to unexpected fees

New survey data released today confirms that Mainers want more transparent hospital prices and would support policies that ban hospitals from charging facility fees (unexpected expenses tacked onto a patient’s hospital bill, often after a visit to a medical practice or clinic), according to the latest findings by Consumers for Affordable Health Care (CAHC). The survey also corroborates data from 2022 that outlined Mainers’ concerns about health care affordability and their negative experiences with medical debt. Overall, many say it is a challenge to afford the health care they need.

Key findings from the Perceptions of Health Care Affordability and Hospital Facility Fees in Maine survey include:

• Half of all surveyed Mainers find it difficult to afford health care; many responded it is very difficult to afford health care.

• Four out of ten Mainers have taken on medical debt within the past five years; three out of four who took on medical debt in the past five years still have that debt.

• Two out of three Mainers say they would have difficulty paying a $500 medical expense.

• Hospital-owned facilities are, by far, the most common source of medical debt, with six out of ten saying the largest share of their debt came from a hospital facility.

• Almost eight out of ten Mainers would support a law that banned hospitals from charging facility fees outside of a hospital – a clear majority strongly support that type of ban.

• Nine out of ten would support laws that require medical providers to disclose their facility fees to patients before they receive treatment.

The full survey can be viewed here.

“While actions have been taken to improve access to health coverage in Maine, too many Mainers continue to struggle with the cost of health care and with medical debt. We all deserve to take care of our health without financial stress or worry,” said Ann Woloson, Executive Director of Consumers for Affordable Health Care. “Mainers have made it clear: establishing transparent hospital prices is a responsible path forward to address high hospital costs. The survey results, coupled with the Task Force to Evaluate the Impact of Facility Fees on Patients  recommendations, show there is a need – and resounding support for – both transparent prices and additional steps to address rising health care costs and medical debt in Maine.”

The survey data comes on the heels of a report released earlier this month from the legislative task force. The top recommendations include support for improved consumer protections, including facility fees transparency, and limits on facility fees in hospital bills for telehealth services, outpatient evaluations, and office visits.

This polling research was supported by United States of Care, a nonpartisan health care advocacy group, and West Health.

One Medical Bill Away From Ruin: How the Legislature Plans to Tackle Medical Debt

Maine’s healthcare costs are through the roof, and it’s leaving too many working families in dire financial straits.

According to a survey conducted earlier this year, more than four out of ten Mainers have medical debt in their household, and more than two-thirds say they are just one major medical bill away from financial ruin. 

When patients seek care from hospitals or healthcare facilities, unfair billing practices ensure that these families are left in the lurch. 

There are healthcare facilities that are quick to send bills to collections, sometimes with little room to discuss payment, let alone pay the bill back in full. Doing this damages a patient’s credit score, making it hard for them to not only seek financial support but to qualify for important necessities, like buying a car or qualifying for a mortgage.

There are also income-eligible Mainers who qualify for free care, but hospitals do not inform them when they do. Hospitals and healthcare facilities do not always offer fair terms for payment plans, either; often they are unrealistic and unreasonably expensive. 

All of this puts people in impossible positions, where they’re forced to make choices between paying their rent or their medical bills. Some even ration their medication or go without care entirely, to avoid crippling medical debt. This is dangerous. 

The good news is that the Legislature is considering LD 1955: An Act to Require Hospitals and Hospital-affiliated Providers to Provide Financial Assistance for Medical Care. This bill will:

• Expand eligibility for free healthcare services for lower-income Mainers, and require hospitals to inform patients when they qualify;

• Require hospitals to offer payment plans with terms of at least 2 years to pay off the bill, with monthly payments never exceeding three percent of a patient's income;

• Require hospitals to provide a 240-day grace period to pay back the debt, and prevent them from selling debt to collections agencies, suing patients to recover debt or withholding services until debts are cleared during that period.

This bill is an important step in ensuring that hospitals and healthcare facilities are obligated to provide fair billing practices for all patients, and free care to those who need it most. Mainers shouldn’t be buried under unbearable medical debt, all for seeking the care they need to be healthy. Sign this petition to tell your representatives to pass LD 1955!