Governor Mills Signs Law to Strengthen Protections for Maine People from the Harmful Impacts of Medical Debt

Governor Janet Mills today signed LD 2129, legislation to protect Maine people by prohibiting medical debt collectors from placing a lien on a person's home or garnishing their wages.

"No one should lose their home or their paycheck because they got sick," said Governor Janet Mills. "We need to do much more to bring down the cost of health care in this country. But in Maine, we're not waiting for the Federal government to act. We are taking action to protect Maine people and to make sure that illness or accident never costs someone their home or their livelihood."

LD 2129, An Act to Strengthen Consumer Protections by Prohibiting Liens on Principal Residences and Wage Garnishments for Medical Debt, was sponsored by Sen. Donna Bailey of Saco, a cancer survivor who has championed Legislative efforts to safeguard Maine people from harmful impacts of medical debt.

The new law builds on earlier legislation signed by Governor Mills, and also sponsored by Senator Bailey, that prohibited medical debt from appearing on consumer credit reports, helping protect Mainers' credit scores and financial stability.

"Medical debt continues to hurt hardworking Maine families who, through no fault of their own, take on debt for seeking medical care -- often for a life-changing diagnosis or for a life-threatening emergency," said Senator Donna Bailey. "With the signing of this bill, we are taking another critical step to protect Mainers from the harmful impact of this debt. It is a part of our plan to help folks breathe a little easier, so they can focus on their healing and recovery."

"Addressing medical debt in Maine is crucial to accomplishing ACS CAN's mission of ending cancer as we know it for everyone," said Julia MacDonald, Maine Director of Government Relations for the American Cancer Society Cancer Action Network (ACS CAN). "For the nearly 11,000 Mainers who will be diagnosed with cancer this year, this legislation will take away another source of stress and concern -- the risk of incurring financial hardship on top of an already devastating diagnosis. ACS CAN thanks Maine lawmakers and Governor Mills for protecting Maine cancer patients and survivors from the serious burden of medical debt."

"This is a meaningful step forward for families living with cancer and chronic illness. It will help reduce financial pressure and allow patients to focus on what's most important: their health and recovery. Thank you to Governor Mills for signing the bill and to Senator Bailey for sponsoring this important legislation," said Kristin Fuhrmann-Simmons, Blood Cancer United Advocate.

According to Maine Consumers for Affordable Health Care, nearly half of all Maine households incurred medical debt in the last two years, and one in three reported that medical debt hurt their ability to afford basic necessities such as food or heat.

"Medical debt, unfortunately, is something Mainers continue to struggle with. We applaud Senator Bailey's leadership on this issue and the Governor signing these important consumer protections into law," said Ann Woloson, Executive Director of Maine Consumers for Affordable Health Care. "Nearly half of Maine families have medical debt and far too many Maine families are having to make tough decisions about paying for the health care they need or putting food on the table, gas in their car or paying their rent. By signing this bill into law, Governor Mills is easing the mind of Mainers who will no long have to worry about losing their homes or having their wages garnished due to medical debt."

Since taking office in 2019, Governor Mills -- who has called on the Federal government to act on universal health care -- has worked tirelessly to expand affordable health coverage in Maine. On her first full day in office, Governor Mills issued an Executive Order expanding Medicaid in Maine. As a result, nearly 230,000 Maine people, all told, have gained access to health care, including preventive care, like cancer screenings, substance use treatment, and mental health services.

The new law will take effect 90 days after the Adjournment of the Second Regular Session of the 132nd Legislature.