The Maryland Medical Debt Protection Act: Your Rights When a Hospital Sues for Unpaid Bills
The Maryland Medical Debt Protection Act sets rules hospitals must follow when collecting unpaid medical bills. These rules cover financial assistance, payment arrangements, collection lawsuits, and certain actions hospitals may take to recover a debt.
If a hospital threatens to sue you or has already filed a lawsuit, you may worry about what happens next. Facing a large medical bill while dealing with court action can be stressful, especially when you are already managing other household expenses.
At William Ray Ford Attorney in Clinton, Maryland, I represent individuals facing debt collection actions. I can review the hospital's claim, determine whether it followed Maryland's collection requirements, and help you respond to the lawsuit. Contact me to discuss your case.
You Have the Right to Time Before a Hospital Can Sue You
A Maryland hospital cannot file a civil lawsuit to collect hospital debt within 240 days after providing you with the initial bill. This waiting period gives you time to address the bill before the hospital takes the matter to court. Maryland law also prohibits a hospital from filing a collection lawsuit against you if your outstanding hospital debt is $500 or less.
If you receive court papers, check the amount the hospital claims you owe and when it provided the initial bill. These details can help determine whether the hospital followed Maryland's requirements before filing suit.
You Have the Right to Be Considered for Financial Assistance Before a Lawsuit
Before suing you, a hospital must determine whether you qualify for free or reduced-cost care under its financial assistance policy. At a minimum, eligible patients whose family income is at or below 200% of the federal poverty level qualify for free medically necessary care. Maryland law also provides reduced-cost care for certain patients with higher family incomes and for eligible patients whose medical debt creates a financial hardship.
You generally have up to 240 days from the date you receive the initial hospital bill to apply for financial assistance. If your financial circumstances change during that period and you inform the hospital, the hospital must take that change into account.
Financial assistance can directly affect the amount the hospital seeks to collect. Depending on your eligibility, financial assistance may reduce or eliminate the amount you owe for qualifying hospital care.
You Have the Right to Information About an Income-Based Payment Plan
Maryland hospitals must provide patients who incur medical debt with information about available installment payment plans. They must also offer income-based payment plans that comply with guidelines established by the Maryland Health Services Cost Review Commission.
Before filing a lawsuit or referring hospital debt to a debt collector, a hospital must demonstrate that it made a good-faith effort to comply with these payment-plan requirements. If you qualify for free or reduced-cost care, the hospital cannot charge interest or fees under an income-based payment plan. Different rules apply if you do not qualify for financial assistance, including limits on when interest may begin and how much the hospital may charge.
You Have the Right to Notice Before the Hospital Sues You
At least 45 days before filing a collection lawsuit, a hospital must send you written notice of its intent to sue by both certified mail and first-class mail. The notice must include required information about the debt and explain the hospital's financial assistance policy.
The hospital must also provide a financial assistance application, information about the availability of an income-based payment plan, and other information required under Maryland law. This notice allows you to review the debt and determine whether financial assistance or a payment arrangement may apply before the hospital takes the matter to court.
You Have the Right to Specific Information and Documents in the Lawsuit
If a hospital files suit, Maryland law requires it to provide information showing whether it complied with the requirements that apply before a lawsuit. The hospital's complaint must include an affidavit addressing matters such as the 240-day waiting period, the required notice of intent to sue, its determination of your eligibility for financial assistance, and its good-faith efforts to comply with payment-plan requirements.
The hospital must also provide supporting documents. These include the original or a certified copy of the hospital bill, a statement showing the remaining amount due, the most recent hospital bill sent to you, and a copy of the notice of intent to sue. I can review the complaint and supporting documents to identify whether the hospital complied with Maryland's requirements before pursuing the claim in court.
Your Primary Residence Is Protected From Certain Collection Actions
A hospital cannot request a lien against your primary residence as part of a lawsuit to collect hospital debt. It also cannot force the sale or foreclosure of your primary residence to recover that debt.
These protections do not prevent a hospital from using other collection methods that Maryland law allows. However, they specifically protect your primary residence from these hospital debt collection actions. I can review the hospital's collection efforts and determine whether it is pursuing your property in a way Maryland law permits.
Your Wages May Be Protected From Garnishment
Maryland provides additional protection if you qualify for free or reduced-cost hospital care. If you qualify for that financial assistance, a hospital cannot file an action against you that would result in wage garnishment to collect hospital debt.
This protection does not mean that every patient's wages are exempt from collection. Whether this restriction applies depends on your eligibility for free or reduced-cost care. If you are concerned about whether debt collectors can garnish your wages without a court order, understanding Maryland's broader garnishment rules can help you recognize what creditors must do before taking money from your paycheck. If a hospital is attempting to garnish your wages, I can review your financial assistance eligibility and the collection action to determine whether Maryland's restriction applies.
You Have the Right to Challenge the Hospital's Claim
A hospital filing a lawsuit does not automatically mean it is entitled to the amount it demands. You can respond to the lawsuit and raise defenses that apply to your circumstances.
For example, you may question the amount claimed, whether payments or insurance benefits were properly credited, or whether the hospital complied with Maryland's requirements before filing suit. Failing to follow an applicable requirement may support your defense, but it does not necessarily mean the debt disappears or the lawsuit will be dismissed. The effect depends on the requirement involved and the circumstances of your case.
Don't ignore court papers, even if you believe the hospital failed to follow Maryland law. Gather your hospital bills, insurance statements, payment records, financial assistance documents, and communications with the hospital or debt collector. Through my debt collection defense services, I can review the hospital's claim and supporting records, identify applicable defenses, and help you respond to the lawsuit. Pay close attention to any court dates and instructions in the documents.
Get Legal Help With a Maryland Hospital Debt Lawsuit
Maryland law places specific requirements on hospitals before and during lawsuits over unpaid medical bills. Depending on your circumstances, the hospital's claim may be affected by financial assistance, payment-plan requirements, advance notice, required court filings, and restrictions on certain collection methods. If a hospital fails to meet a requirement that applies to its collection action, that failure may affect how you respond to the lawsuit.
At William Ray Ford Attorney in Clinton, Maryland, I represent clients facing debt collection matters in and around Camp Springs, Waldorf, Upper Marlboro, Calvert County, Prince George’s County, Anne Arundel County, Montgomery County, Howard County, Frederick County, and Queen Anne’s County. I can review the hospital's claim and court documents, determine whether it followed Maryland law, and help you respond to the lawsuit. Contact me now to discuss your case.