MD HB765

Hospitals may sell patient medical debt to governmental units, government contractors, or 501(c)(3) nonprofit organizations for the sole purpose of canceling the debt, with patients owing nothing on sold debt

Eligible debt must be at least 2 years old, not subject to insurance appeals or expected third-party reimbursements, and for patients with family income at or below 500% of the federal poverty level or medical debt exceeding 5% of family income

Hospitals must dismiss pending collection actions and cease all collection activities on sold debt, including enforcing existing judgments

Debt purchasers must notify patients that their debt has been canceled and seek to vacate any judgments or remove adverse credit reporting information

Hospitals must annually report to the Commission the total dollar amount of debt sold, amounts paid by purchasers, and total number of patients whose debt was sold; the law takes effect July 1, 2025 and sunsets June 30, 2028