MD HB1324

Hospitals may sell patient medical debt to 501(c)(3) nonprofit organizations for the sole purpose of canceling that debt, creating an exception to the existing prohibition on hospital debt sales

Sales require a written agreement from the patient and a contract stating the debt will be canceled; patients bear no responsibility for any amount, interest, fees, or costs associated with sold debt

Hospitals must dismiss pending collection actions against patients whose debt was sold and are prohibited from engaging in any collection activities or collecting on judgments for sold debt

Hospitals must report fulfillment of payment obligations to credit agencies within 60 days when debt is sold, and the Commission will treat sale payments as an offset to hospitals' reported uncompensated care amounts

Effective date: October 1, 2025