Prince George's County - Hospitals - Sale of Patient Debt PG 402-25

HB 405 allows hospitals in Prince George’s County to sell unpaid medical debt to the county **solely for the purpose of canceling the debt**, directly affecting uninsured or low-income patients with outstanding hospital bills. The bill amends Maryland’s health code to permit this debt sale only if the contract explicitly states cancellation is the sole purpose, and patients are then fully relieved of all debt, interest, and fees. Hospitals must notify patients when debt is canceled, and the county’s payment to hospitals counts as an offset against the hospital’s required uncompensated care reporting. This policy change replaces prior restrictions on selling debt and adds transparency requirements, including annual public reports on debt collection practices by hospital.