An Act to Establish the Medical Debt Relief Program
Maine Legislature, Session 132, LD 0902
Sponsors: BALDACCI
Amends: 9-A MRSA §6

Legislative Document
No. 902
S.P. 391
In Senate, March 11, 2025
An Act to Establish the Medical Debt Relief Program
Received by the Secretary of the Senate on March 5, 2025.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BALDACCI of Penobscot.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  9-A MRSA §6-118 is enacted to read:
§6-118.  Medical Debt Relief Program; administration
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Federal poverty level" means the nonfarm income official poverty line for a family 
of the size involved, as defined by the federal Office of Management and Budget and 
revised annually in accordance with the United States Omnibus Budget Reconciliation 
Act of 1981, Section 673, Subsection 2.
B.  "Medical debt" means debt that was accrued from the receiving or purchasing of 
medical services, products or devices.  For the purposes of this section, "medical debt" 
must be liberally construed in order to not reduce the types of debt that may be subject 
to discharge, cancellation or forgiveness.  
C.  "Medical services" means medical evaluation, diagnosis, treatment, rehabilitation 
and transport provided by a licensed medical provider. 
D.  "Program" means the Medical Debt Relief Program established in subsection 2. 
2. Program established. The Medical Debt Relief Program is established to relieve 
medical debt for a resident of this State whose federal adjusted gross income is not more 
than 400% of the federal poverty level, as measured by the person's federal income tax 
return for the prior year. The program is administered by the Department of Professional 
and Financial Regulation, Bureau of Consumer Credit Protection, which has the authority 
to enter into a contract for the purchase, cancellation or forgiveness of medical debts. 
3. Medical debt eligibility requirements. A resident of this State's medical debt is 
eligible for relief under the program if the following conditions are met:
A.  The medical debt was incurred in order to obtain medical services, products or 
devices; 
B.  The medical debt is in collection or has been sold or assigned by the original medical 
provider; and 
C.  The medical debt is owed by a resident of the State whose federal adjusted gross 
income is not more than 400% of the federal poverty level. 
4. Notice. Any resident of this State whose medical debt is discharged, cancelled or 
forgiven under the program must be notified of the relief of the medical debt. 
5. Discharged, cancelled or forgiven medical debt not included in taxable income. 
Notwithstanding any provision of law to the contrary, for the purposes of state income 
taxes, the amount of any medical debt discharged, cancelled or forgiven under the program 
may not be included in a resident's taxable income.
6.  Report.  Beginning February 1, 2027 and annually thereafter, the Department of 
Professional and Financial Regulation, Bureau of Consumer Credit Protection shall submit 
a report on the program to the joint standing committee of the Legislature having 
jurisdiction over health coverage, insurance and financial services matters.
SUMMARY
This bill establishes the Medical Debt Relief Program to be administered by the 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection for the purchase, cancellation and forgiveness of medical debt for residents of 
the State whose federal adjusted gross income is not more than 400% of the federal poverty 
level and who meet other specified conditions.  The bill provides that cancelled or forgiven 
debt may not be included the individual's taxable income.