MD SB981

Requires hospitals to provide free medically necessary care to patients with family income at or below 200% of the federal poverty level, and establishes a sliding scale of reduced-cost care (35-75% reduction) for patients with income between 201-500% of the federal poverty level who experience financial hardship

Extends the waiting period before hospitals can file civil actions, report adverse information to credit agencies, or charge interest on medical debt from 180 days to 240 days after the initial bill is provided

Prohibits hospitals from filing civil lawsuits to collect medical debts of $500 or less, and excludes hospital-consumer contracts from the 12-year statute of limitations on sealed contracts, limiting them to the standard 3-year period

Caps monthly payments under income-based payment plans at 5% of the patient's household adjusted gross income and prohibits interest charges for patients eligible for free or reduced-cost care

Expands the definition of "medical debt" to include co-payments, coinsurance, and deductibles, and requires hospitals to notify patients they have 240 days to apply for financial assistance after receiving the initial bill