An Act to Protect Consumers from Predatory Medical Credit Card Providers
Maine Legislature, Session 131, LD 2174
Committee Amendment CA_A_S678 (Senate)
Amends: 9-A MRSA §5, 10 MRSA §1310-H

COMMITTEE AMENDMENT "^ " to S.P, 925, L.D. 2174, "An Act to Protect
Consumers from Predatory Medical Credit Card Providers"
Amend the bill by striking out the title and substituting the following:
'An Act to Increase Consumer Protections for Consumers with Medical Debt
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 9-A MRSA §5-116-A, sub-§l, as enacted by PL 2009, c. 526, §1, is
repealed and the following enacted in its place:
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the followine meanings.
A, "Arrange for or establish an aoplication" means the act of a health care provider
receiving application infonnation from a consmner for o&en-end credit or a loan and
submittin&that application information to a lender for approval or rejection,
B.,IIDeferred interest provision" means a contractual provision that allows for interest
to be charged on portions of the original balance ofopen-end credit or a loan.
C. "Health care provider" means a:
(1} Hospital, clinic, clinical laboratory or other health care facility that provides
health care services that is licensed^ registered or authorized to provide health care
services in this State; and
(2) Physician, health care practitioner or other individual licensed, registered or
certified to orovide health care services in this State,
"Health care provider" does not include a veterinarian or any facility licensed,
registered or authorized to provide vetermary services in this State.
D. "Open-end credit" has the same meaning_asm section 1-301. subsection 26,
Sec. 2. 9-AMRSA §5-116-A,sub-§5 is enacted to read;
COMMITTEE AMENDMENT
Q COMMITTEE AMENDMENT "^ " to S.P. 925, L.D. 2174 [ 5-(
5. Use of open-end credit and loansin health care settings; reauirements. The
following requirements apply to the use of open-end credit and loans in a health care
setting.
A. A health care provider may not arrange for or establish an application for open-end
credit or a loan for a consumer in a treatment or recovery room, except that a health
care provider may state or disclose what forms of payment are accepted for health care
services provided to a consumer and how a consumer can receive more information
about payment for health care seryices.
B. A health care provider may not, on a consumer's behalf, arrange for or establish an
application for open-end credit or a loan that contains a deferred interest provision.
C. A health care provider may not accept payment for the costs of health care services
using open-end credit or a loan that contains a deferred interest provision at any time
prior to the date upon which the health care services are rendered or any costs are
incurred, except in circumstances when advance Bayment is required to secure a lower
price for health care services.
D. A health care provider may not advertise or promote open-end credit .or a loan as
having a zero interest rate if the Ot3en-end_credit pr loan has a deferred interest rate
unless the uresence of a deferred interest provision is clearly disclosed with the
advertisement or promotional material and the health care_proYider also includes
educational material exulainine deferred interest to the consumer with the
advertisement or promotional material.
Sec. 3. 10 MRSA §1310-H, sub-§4, as enacted by PL 2019,c.77,§2, is amended
to read:
4. Reporting of medical expenses debt on a consumer report Notwithstanding any
provision of federal law, a consumer reporting agency shall comply with the following
provisions with respect to the reporting of medical expenses debt on a consumer report. For
the purposes of this subsection, "medical debt" means debt arising from the provision of
8 any health care services, including dental services, or health care products, includine
devices, durable medical equipment or prescription drugs, to a consumer. "Medical debt"
0 does not include debt arising from the provision of services by a veterinarian; debt charged
to a credit card unless the credit card is issued under an open-end credit or closed-end credit
plan offered solely for the payment of health care services; debt charged to a home equity
or general nurpose line of credit; or secured debt.
A. A consumer reporting agency may not report medical debt from medical expenses
on a consumer's consumer report when the date of the first delinquency on the debt is
less than 180 days prior to the date that the debt is reported.
B. Upon the receipt of reasonable evidence from the consumer, creditor or debt
collector that a medical debt from medical expenses has been settled in fall or paid in
full, a consumer reporting agency-r shall remove or suppress the report of medical debt
on the consumer's consumer report.
(1) May not report that debt from medical expenses; and
(2) Shall remove or suppress the report of that debt from medical expenses on the
consumer's consumer report.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " /A " to S.P. 925, L.D. 2174
C. As long as the consumer is making regular, scheduled periodic payments toward
the medical debt from medical expenses reported to the consumer reporting agency as"
agreed upon by the consumer and medical provider, the consumer reporting agency
shall report that medical debt from medical exponsos on the consumer's consumer
report in the same manner as debt related to a consumer credit transaction is reported,
Sec. '4. Appropriations and allocations. The following appropriations and
allocations are made.
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF
Administrative Services - Professional and Financial Regulation 0094
Initiative: Provides allocations to establish one Consumer Credit Examiner position to
examine health care providers to ensure compliance with open-end credit and loan
requirements.
OTHER SPECIAL REVENUE FUNDS 2023-24 2024-25
AllOther $0 $4,618
OTHER SPECIAL REVENUE FUNDS TOTAL $0 $4,618
Bureau of Consumer Credit Protection 0091
Initiative: Provides allocations to establish one Consumer Credit Examiner position to
examine health care providers to ensure compliance with open-end credit and loan
requirements.
OTHER SPECIAL REVENUE FUNDS
POSITIONS - LEGISLATIVE COUNT
Personal Services
All Other
OTHER SPECIAL REVENUE FUNDS TOTAL $0 $90,862
PROFESSIONAL AND FINANCIAL
REGULATION, DEPARTMENT OF
DEPARTMENT TOTALS 2023-24 2024-25
OTHER SPECIAL REVENUE FUNDS $0 $95,480
DEPARTMENT TOTAL - ALL FUNDS $0 $95,480
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the minority report of the committee, replaces the bill and
changes the title. The amendment does the following.
COMMITTEE AMENDMENT
2023-24
0.000
$0
$0
2024-25
1.000
$84,940
$5,922
^"
^ COMMITTEE AMENDMENT " ^ " to S,P. 925, L.D. 2174
1. It prohibits the reporting of medical debt on a consumer's credit report by a consumer
reporting agency.
2. It prohibits a health care provider from arranging for or establishing an application
for open-end credit or a loan that contains a deferred interest provision in a treatment or
recovery setting except that a provider is not prohibited from stating or disclosing what
forms of payment for health care services are accepted and how a consumer can receive
more information about forms of payment.
3. It prohibits a health care provider from arranging for or establishing open-end credit
or a loan application on a consumer's behalf if the product contains a deferred interest
provision.
4. It prohibits a health care provider from accepting payment for the costs of health
care services using open-end credit or a loan that contains a deferred interest provision at
any time prior to the date upon which the health care services are rendered or any costs are
incurred, except in circumstances when advance payment is required to secure a lower price
for health care services.
5. It prohibits a health care provider from advertising or promoting open-end credit or
a loan as having a zero interest rate if the open-end credit or loan has a deferred interest
rate unless the presence of a deferred interest provision is clearly disclosed with the
advertisement or promotional material and the health care provider also includes
educational material explaining deferred interest to the consumer with the advertisement
or promotional material.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Revised: 04/01/24 ^^c"-
131st MAINE LEGISLATURE I
LD 2174 LR 2796(02)
An Act to Protect Consumers from Predatory Medical Credit Card Providers
Fiscal Note for Bill as Amended by Committee Amendment '^/^-t
Committee: Health Coverage, Insurance and Financial Services
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Appropriations/Allocations
Other Special Revenue Funds $0 $95,480 $97,093 $102,553
'iscal Detail and Notes
The bill includes Other Special Revenue Funds allocations to the Department of Professional and Financial
Regulation of $95,480 in fiscal year 2024-25 to establish one Consumer Credit Examiner position to examine health
care providers to ensure compliance with open-end credit and loan requirements.
LR2796(02) - Fiscal Note - Page 1 of 1