Maryland medical debt collection is uniquely challenging: the state caps lawsuits at three years, bans home liens and wage garnishments for many low-income patients, and forces hospitals to offer zero-interest payment plans before any “extraordinary” action. Add the 2021 Medical Debt Protection Act and a tough licensing regime under the Maryland Collection Agency Licensing Board, and one compliance slip can cost thousands. Midwest Service Bureau (MSB) meets that challenge with a purpose-built Maryland medical debt collection workflow that converts aged receivables into predictable revenue, without harming patient relationships or triggering Attorney-General scrutiny. Backed by 55 years in healthcare collections and real-time analytics in our Expert Analysis portal, we keep your revenue cycle—and reputation—healthy.
Maryland Medical Debt Collection Laws
| Key Rule | Requirement | Why It Matters |
|---|---|---|
| Statute of limitations | 3 years for written & open-account debts (Md. Cts. & Jud. Proc. § 5-101) | • No lawsuits/liens/wage garnishments if patient ≤ 200 % FPL • Zero-interest payment plans, min 36 months • Credit-bureau reporting barred for 180 days |
| Medical Debt Protection Act (HB 565 / SB 514, 2021) | Defines the suit window for Maryland medical debt collection | Directly limits collection tools |
| Surprise Billing (HB 1420 / SB 894, 2020) | Disputed out-of-network balances stay out of collections until arbitration ends | Prevents premature Maryland medical debt collection |
| Judgment interest | Shield consumers’ homes | Caps post-judgment recovery |
| Homestead protection | Hospitals barred from placing liens on a patient’s primary residence (HB 565) | Shields consumers’ homes |
HIPAA & Breach-Notification
MSB encrypts all PHI in transit and at rest, enforces role-based access, and mirrors Maryland’s 45-day breach-notice deadline (Md. Comm. Law § 14-3504) in every Business Associate Agreement. Immutable audit logs live in our HIPAA + FDCPA hub.
Licensing, MCDCA & FDCPA
The Maryland Collection Agency Licensing Act (Md. Bus. Reg. § 7-101 et seq.) requires annual licensing and a $5 000 – $15 000 surety bond. The Maryland Consumer Debt Collection Act (MCDCA) and the Consumer Protection Act make any FDCPA breach an unfair practice. MSB renews its license every July, maintains bonding, and trains collectors yearly, so every Maryland medical debt collection call is respectful and lawful.
Credit-reporting note: Maryland has no blanket ban on medical tradelines, but the 180-day hold in HB 565 applies. MSB suppresses reporting on request and will adjust when the CFPB’s nationwide prohibition takes effect.
Our Maryland Medical Debt Collection Process
| Phase | Actions | Outcome |
|---|---|---|
| 1 — Account Review & Validation | Mail first notice within 24 h with bilingual charity-care insert. Voice/SMS/email/portal outreach respects an 8 a.m.–9 p.m. window & MCDCA scripting. Patients self-serve through our Early-Out Patient Collections portal—creating zero-interest plans in minutes | Only clean, compliant Maryland medical debt collection files advance |
| 2 — Patient Contact & Communication | Mail first notice within 24 h with bilingual charity-care insert. Voice/SMS/email/portal outreach respects 8 a.m.–9 p.m. window & MCDCA scripting. Patients self-serve through our Early-Out Patient Collections portal—creating zero-interest plans in minutes | Higher right-party contacts, lower complaint risk |
| 3 — Resolution & Payment Processing | Post settlements, HSA draws, payment-plan drafts instantly; APIs feed live dashboards. All receipts reflect 6 % statutory interest & HB 565 disclosures | Faster cash, audit-ready documentation |
Types of Medical Debt We Collect
Hospital Balances & Maryland Medical Debt Collection
- Emergency-department visits
- Inpatient & outpatient surgeries
- Diagnostic imaging & lab services
- Surgical implants & supplies
Physician-Practice Maryland Medical Debt Collection
- Primary-care appointments
- Specialist consults & procedures
- Ancillary lab/imaging referrals
Specialty Healthcare Debt
- Dental debt collection
- Vision & hearing care
- Mental-health therapy
- Home-health & physical-therapy balances
Benefits of Maryland Medical Debt Collection for Providers
- Improved Cash Flow — Clients using our Maryland medical debt collection workflow trim AR days by 30 %, releasing capital for staffing & tech.
- Compliance Assurance — HIPAA encryption, state licensing, 6 % interest-cap & charity-care safeguards keep you clear of AG scrutiny.
- Patient Relationship Preservation — Empathy-first scripting, transparent billing, and flexible payment options keep Net Promoter Scores high, even during tough Maryland medical debt collection conversations.
Frequently Asked Questions
What is the statute of limitations for medical debt in Maryland?
Three years from the last invoice or payment, a new payment or written promise restarts the clock, crucial for Maryland medical debt collection timing.
Can medical debt affect my credit score in Maryland?
Only after 180 days, MSB can suppress reporting on request. We’ll adjust when federal rules change, protecting patients during Maryland medical debt collection.
How does medical debt collection differ from other debt?
Maryland medical debt collection must navigate HIPAA, state licensing, MCDCA, surprise-billing holds, charity-care screening, and a three-year statute, stricter than standard consumer debt.
What should I do if I receive a medical debt collection notice?
Review the itemized bill and Good-Faith Estimate, compare charges with your Explanation of Benefits, and contact MSB within 30 days to dispute or arrange a plan—your first step toward resolving Maryland medical debt collection issues.
Contact Us
Ready to strengthen your revenue cycle? Reach our nationwide MSB headquarters, serving Maryland providers daily.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
