Lawmakers in Augusta have approved legislation changing how medical debt is handled in the State of Maine.
LD 2115 — sponsored by Sen. Mike Tipping (D-Penobscot) — was introduced earlier this year and subsequently referred to the Health Coverage, Insurance and Financial Services (HCIFS) Committee.
Under the amended version of this bill now approved by both chambers of the Legislature, debt collectors are prohibited from charging any interest or fees in connection with medical debt.
It also bars debt collectors from pursuing litigation to compel the payment of medical debt if the consumer’s household income is less than 300 percent of the federal poverty line.
Both chambers opted to pass LD 2115 without taking a roll call vote.
The original version of this legislation looked markedly different, serving instead to prohibit health care providers from “assign[ing], sell[ing], or otherwise transfer[ing] medical debt to a debt collector for less than the total amount of the debt unless the health care provider has offered the consumer responsible for the debt the opportunity to acquire the debt at the same reduced amount.”
Click Here to Read the Original Draft of LD 2115
This bill — as amended by the HCIFS Committee majority report — takes a far broader approach to changing how health care providers and debt collectors handle the medical debt accrued by Mainers.
Under this legislation, debt collectors cannot impose interest or fees upon medical debt and are barred from pursuing litigation to compel payment from households making less than 300 percent of the federal poverty line.
In order to take legal action, debt collectors must show that they sent written notice explaining this criteria and gave the consumer in question at least 30 days to provide proof that they fall below this threshold.
The HCIFS Committee’s minority report — supported only by Rep. Poppy Arford (D-Brunswick) — is nearly identical to the majority amendment, except for the fact that it raises the threshold for litigation from 300 percent to 400 percent of the federal poverty line.
Click Here to Read the Full Text of LD 2115 As Approved by Lawmakers
Sen. Tipping’s sponsor amendment — proposed to the Committee in March — would have accomplished many of these same goals but proposed going a step further.
Tipping’s amendment would have prohibited the pursuit of litigation to compel the collection of any medical debt — regardless of household income — while also preventing such debt from being figured into Mainers’ credit scores.
Lawmakers in both the House and Senate voted without a roll call to approve LD 2115 as amended by the majority of the HCIFS Committee and will now be sent to Gov. Janet Mills (D) for a signature.
Then who is going to pay the nurses doctors etc. Joe Biden? Free just like collage. Print more $ and get more inflation is what Salumson said.
“Tipping’s amendment would have prohibited the pursuit of litigation to compel the collection of any medical debt — regardless of household income — while also preventing such debt from being figured into Mainers’ credit scores”.
Nice way to promote responsibility. Free college, free medical care, free everything. Whoopee!!