Hospitals - Financial Assistance and Collection of Debts - Policies

SB 981 requires Maryland hospitals to provide free medically necessary care to patients with family income at or below 200% of the federal poverty level and reduced-cost care to those between 200-500% FPL who face financial hardship (defined as medical debt exceeding 25% of family income over 12 months). It mandates a 75% reduction in patient costs for individuals earning 201-250% of the poverty level and prohibits hospitals from filing lawsuits to collect debts under a specified low threshold. The bill also extends the time before interest accrues on medical debt and adds requirements for hospitals to clearly explain financial assistance policies to patients. These changes directly affect low- and middle-income patients with hospital bills and hospitals operating in Maryland.