Bill Positions

Bill Number: SB 494

Bill Title: Health Services Cost Review Commission - Limit on Interest or Late Payment Fees

Bill Sponsor(s): Sen. Brochin

Subject: Health

Committee: FIN

Bill Summary: This bill would have prohibited a hospital from charging a patient interest or late fees exceeding 5% annually.

History: The bill received an unfavorable report from the Finance Committee.

Chamber Position: Oppose

Position Summary: Interest rates should be established at a reasonable level to reflect the time value of money. As interest rates rise and fall in the marketplace over time, it is inadvisable to lock into state law an interest rate ceiling for health care facilities. Additional amounts of bad debt for hospitals will simply be passed on to businesses through uncompensated care charges for hospital patients.

Position Statement: Click here (pdf)

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.