Medical debt is pushing too many Maryland families into financial distress. Families struggling to afford essential health care are being forced into high-cost medical credit cards, aggressive debt collection lawsuits, and unfair credit reporting practices—all of which trap patients in cycles of financial hardship.

Thanks to your efforts, two of our priority bills (read more about HB268 and HB428) to improve these outcomes have passed out of committee and are on track to make it to the other chamber by crossover day. But the fight is not done, and there are still protections we need to secure at the state level.

44% of medical debt comes from outpatient services like physical therapy, diagnostic testing, and dental care, which currently lack the same consumer protections as hospital bills. Patients are being misled into signing up for medical credit cards with hidden interest rates, leaving many unable to pay their bills, destroying their credit.

Credit is important for consumers, particularly as the cost of living increases, access to credit is a critical tool for working families to make ends meet.

HB1020/SB614, expands protections for Marylanders facing outpatient medical debt and ensures this debt cannot be adversely reported to credit agencies. This bill, sponsored by Delegate Palakovich-Carr and Senator Lam would:

• Ban credit reporting agencies from including a patient’s medical debt in their report
• Prohibit a person from using medical debt included in a credit report to determine creditworthiness, so patients aren’t blocked from housing, jobs, or loans due to an unexpected medical bill.

Please urge your legislators to protect patients and pass this legislation! Medical debt is a unique form of debt because it impacts everyone from all income levels, and no one chooses to take it on. Illness already has an impact on your physical health, it shouldn’t harm your financial health too.

You can read more about our work on ending this debt in Maryland, and access our Guide to Medical Debt here!