A new Maine law, Maine LD 2115 focused on medical debt collection reform was signed by Governor Janet Mills in April and will take effect on August 9, 2024. Maine L.D 2115, “An Act to Prohibit Unfair Practices Related to the Collection of Medical Debt” aims to reform the methods used to collect medical debts.
Maine LD 2115 defines medical debt as, “debt arising from healthcare services, including dental services, or healthcare goods, including products, devices, durable medical equipment and prescription drugs.” The law does not include debt from services provided by a veterinarian, debt charged to a credit card unless that credit card is issued under an open-end or closed-end credit plan offered solely for the payment of healthcare services, debt charged to a home equity or general-purpose line of credit, or secured debt.
The law prohibits a debt collector from charging any interest or in connection with the collection of medical debt. It also prevents debt collectors from making false claims about the accumulation of interest and fees on a medical debt.
Finally, Maine LD 2115 puts limitations on the circumstances under which a debt collector can pursue litigation to legally enforce the payment of medical debt. Debt collectors cannot pursue litigation to compel payment from households that are making 300 percent or less of the federal poverty guidelines. In order to take legal action, debt collectors must show that they sent the consumer written notice explaining this criteria and providing the consumer at least 30 days to produce evidence that they fall below this threshold.
Maine joins a growing list of states that are adding laws around medical debt. Americollect is working to keep you up to date on these changes, adding new articles to our resource center on a regular basis.
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