Commercial Law - Consumer Protections - Health Care Financing

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0796*

SENATE BILL 796
I3, I2 6lr2045
CF 6lr2044
By: Senator Lam
Introduced and read first time: February 6, 2026
Assigned to: Finance

A BILL ENTITLED

AN ACT concerning 1

Commercial Law – Consumer Protections – Health Care Financing 2

FOR the purpose of establishing consumer protections related to health care financing, 3
including disclosure and refund requirements; prohibiting health care providers and 4
certain agents of health care providers from offering, obtaining, applying, assisting 5
in applying for certain financing; prohibiting a health care provider from promoting 6
certain financing to certain patients or billing a certain financier before a certain 7
number of days prior to a procedure; authorizing a health care provider to offer 8
certain financing to pay for certain costs under certain circumstances; requiring the 9
Consumer Protection Division of the Office of the Attorney General to prepare and 10
publish a certain disclosure; and generally relating to consumer protections related 11
to health care financing. 12

BY repealing and reenacting, with amendments, 13
Article – Commercial Law 14
Section 13–301(14)(xlvii) 15
Annotated Code of Maryland 16
(2025 Replacement Volume) 17

BY repealing and reenacting, without amendments, 18
Article – Commercial Law 19
Section 13–301(14)(xlviii) 20
Annotated Code of Maryland 21
(2025 Replacement Volume) 22

BY adding to 23
Article – Commercial Law 24
Section 13–301(14)(xlix); and 14–5101 through 14–5107 to be under the new subtitle 25
“Subtitle 51. Health Care Financing” 26
Annotated Code of Maryland 27
(2025 Replacement Volume) 28
2 SENATE BILL 796

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Commercial Law 3

13–301. 4

Unfair, abusive, or deceptive trade practices include any: 5

(14) Violation of a provision of: 6

(xlvii) Title 14, Subtitle 50 of this article; [or] 7

(xlviii) Section 13–411.1(c)(2) of the Transportation Article; or 8

(XLIX) TITLE 14, SUBTITLE 51 OF THIS ARTICLE; OR 9

SUBTITLE 51. HEALTH CARE FINANCING. 10

14–5101. 11

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 12
INDICATED. 13

(B) (1) “HEALTH CARE PROVIDER” MEANS: 14

(I) A PERSON WHO IS LICENS ED, CERTIFIED, OR OTHERWISE 15
AUTHORIZED UNDER THE HEALTH OCCUPATIONS ARTICLE TO PROVIDE HE ALTH 16
CARE IN THE ORDINARY COURSE OF BUSINESS OR PRACTICE OF A PROF ESSION OR 17
IN AN APPROVED EDUCATION OR TRAINING PROGRAM; OR 18

(II) A VETERINARIAN LICENSED UNDER TITLE 2, SUBTITLE 3 OF 19
THE AGRICULTURE ARTICLE. 20

(2) “HEALTH CARE PROVIDER” INCLUDES: 21

(I) AN EMPLOYEE OF A PERSON DESCRIBED IN PARAGRAPH (1) 22
OF THIS SUBSECTION; AND 23

(II) AN AGENT OF A PERSON DESCRIBED IN PARAGRAPH (1) OF 24
THIS SUBSECTION. 25

(3) “HEALTH CARE PROVIDER” DOES NOT INCLUDE A HOSPITAL. 26
SENATE BILL 796 3

(C) “PROGRAM” MEANS THE MARYLAND HEALTH CARE ASSISTANCE 1
PROGRAM. 2

(D) (1) “THIRD–PARTY FINANCING” MEANS FINANCING PROV IDED BY A 3
PERSON OTHER THAN A HEALTH CARE PROVIDER PROVIDING HEALTH CAR E 4
TREATMENT TO A PATIE NT OR THE PATIENT RE CEIVING THE HEALTH CAR E 5
TREATMENT IN ORDER TO PAY FOR THE TREATMENT. 6

(2) “THIRD–PARTY FINANCING” INCLUDES: 7

(I) AN OPEN END CREDIT PLAN AS DEFINED BY 15 U.S.C. 1602; 8

(II) A LINE OF CREDIT; AND 9

(III) A LOAN. 10

14–5102. 11

A HEALTH CARE PROVIDER SHALL: 12

(1) BEFORE DISCUSSING THIRD–PARTY FINANCING WITH A PATIENT: 13

(I) PROVIDE A DISCLOSURE THAT MEETS THE REQUIREMENTS 14
OF § 14–5104(A) OF THIS SUBTITLE; AND 15

(II) PROVIDE THE PATIENT WITH A WRITTEN TREATMENT PLAN 16
THAT MEETS THE REQUIREMENTS OF § 14–5105 OF THIS SUBTITLE; 17

(2) PROVIDE A PATIENT WITH A FULL REFUND FOR ANY TREATMENT 18
NOT PROVIDED, IF ANY, WITHIN 15 DAYS AFTER THE PATIENT’S REQUEST FOR THE 19
REFUND; AND 20

(3) IF A CREDIT CARD IS U SED TO PAY FOR HEALTH CARE SERVICES, 21
PROVIDE THE PATIENT WITH THE WRITTEN DIS CLOSURE REQUIRED UND ER § 22
14–5104(B) OF THIS SUBTITLE. 23

14–5103. 24

(A) A HEALTH CARE PROVIDER MAY NOT: 25

(1) OBTAIN THIRD–PARTY FINANCING ON BEHALF OF A PATIENT; 26

4 SENATE BILL 796

(2) COMPLETE ANY PART OF AN APPLICATION FOR T HIRD–PARTY 1
FINANCING ON BEHALF OF A PATIENT; 2

(3) PROVIDE A PATIENT OR AN INDIVIDUAL AUTHORIZED TO ACT ON 3
BEHALF OF A PATIENT WITH AN ELECTRONIC D EVICE TO BE USED TO APPLY FOR 4
THIRD–PARTY FINANCING; 5

(4) PROMOTE THIRD–PARTY FINANCING TO A PATIENT WHO: 6

(I) IS UNDER THE INFLUENC E OF ANY MIND –ALTERING 7
SUBSTANCE, INCLUDING ANESTHESIA; 8

(II) IS ACTIVELY UNDERGOIN G TREATMENT AT THE T IME OF 9
THE PROMOTION; OR 10

(III) IS IN AN AREA WHERE T REATMENT IS PROVIDED UNLESS 11
THERE IS NO OTHER AREA AT THE HEALTH CARE PROVIDER’S OFFICE; 12

(5) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , 13
OFFER FINANCING , ACCEPT THIRD –PARTY FINANCING , OR CHARGE A HEALTH 14
CREDIT CARD, IF THE PATIENT’S INSURANCE WILL COVER SERVICES PROVIDED; OR 15

(6) BILL A THIRD –PARTY FINANCIER MORE THAN 30 DAYS BEFORE 16
PROVIDING THE HEALTH CARE SERVICES FOR WHICH THE THIRD–PARTY FINANCING 17
WAS OBTAINED. 18

(B) IF THE PATIENT’S INSURANCE WILL COVER THE SERVICES PROVIDED, A 19
HEALTH CARE PROVIDER MAY OFFER FINANCING , THIRD–PARTY FINANCING , OR 20
CHARGE A CREDIT CARD TO PAY FOR A COPAY, COINSURANCE, OR A DEDUCTIBLE. 21

14–5104. 22

(A) (1) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , A 23
HEALTH CARE PROVIDER SHALL PROVIDE THE FO LLOWING DISCLOSURE WHEN 24
DISCUSSING THIRD–PARTY FINANCING WITH A PATIENT: 25

“CREDIT OR LOAN FOR HEALTH CARE SERVICES 26

THE ATTACHED APPLICATION AND INFORMATION IS FOR A CREDIT CARD OR 27
LOAN TO HELP YOU PAY FOR YOUR HEALTH CARE TREATMENT. YOU SHOULD KNOW 28
THAT: 29

 YOU ARE APPLYING FOR A _____ CREDIT CARD OR A ____ LOAN FOR $_____. 30
SENATE BILL 796 5

 YOU DO NOT HAVE TO AP PLY FOR THE CREDIT C ARD OR LOAN . YOU MAY 1
REQUEST TO REVIEW , FILL OUT , AND/OR SIGN THE APPLICAT ION IN A 2
DIFFERENT LOCATION OR AT A DIFFERENT TIME. 3
 THIS CREDIT CARD OR L OAN IS NOT THE O NLY WAY YOU MAY PAY FOR YOUR 4
TREATMENT. YOU MAY PAY YOUR HEAL TH CARE PROVIDER IN ANOTHER 5
MANNER. 6
 THIS CREDIT CARD OR L OAN IS NOT A PAYMENT PLAN PROVIDED BY YOU R 7
HEALTH CARE PROVIDER. IT IS CREDIT WITH OR A LOAN MADE BY (NAME OF 8
COMPANY ISSUING THE CREDIT C ARD OR LOAN ). YOUR HEALTH CARE 9
PROVIDER DOES NOT WORK FOR THIS COMPANY. 10
 BEFORE APPLYING FOR T HIS CREDIT CARD OR L OAN, YOU HAVE THE RIGHT 11
TO A WRITTEN TREATME NT PLAN PROVIDED BY YOUR HEALTH CARE 12
PROVIDER. THIS TREATMENT PLAN MUST: 13
o DISCLOSE THE TREATMEN T EXP ECTED TO BE PROVIDED AND THE 14
ESTIMATED COSTS OF EACH SERVICE INCLUDED; 15
o DISCLOSE HOW MUCH OF THE COST YOUR INSURANCE IS EXPECTED TO 16
COVER, IF YOU HAVE INSURANCE; AND 17
o DISCLOSE WHETHER MARYLAND MEDICAID WILL COVER A N 18
ALTERNATIVE TREATMEN T OPTION , IF YOU HAVE MARYLAND 19
MEDICAID. 20
 IF YOU PREFER TO SOLE LY USE SERVICES COVE RED BY MARYLAND 21
MEDICAID, YOU SHOULD NOT APPLY FOR THIS CREDIT CARD OR LOAN. 22
 YOUR HEALTH CARE PROVIDER MAY NOT CHARGE THE CREDIT CARD OR LOAN 23
ACCOUNT YOU ARE APPLYING FOR UNTIL 30 DAYS BEFORE THE BEGINNING OF 24
YOUR TREATMENT. 25
 YOU HAVE THE RIGHT TO CANCEL THIS CREDIT CARD OR LOAN BEFORE T HE 26
TREATMENT IS PROVIDED, WITHOUT PENALTY. 27
 YOU HAVE THE RIGHT TO HAVE YOUR CREDIT CAR D OR LOAN ACCOUNT 28
REFUNDED FOR THE FULL AMOUNT OF ANY CHARGES FOR TREATMENT THAT 29
YOU DID NOT RECEIVE. 30
 YOUR HEALTH CARE PROVIDER IS REQUIRED TO REFUND THE FULL AMOUNT 31
OF ANY CHARGES FOR T REATMENT THAT YOU DI D NOT RECEIVE WITHIN 15 32
DAYS AFTER YOUR REQUEST FOR THE REFUND. 33
 YOUR LENDER IS REQUIR ED TO CREDIT ANY REF UND PROVIDED AGAINST 34
YOUR CREDIT CARD BALANCE OR LOAN BALANCE. 35
 YOU MAY BE REQUIRED TO PAY INTEREST ON THE AMOUNT CHARGED TO THE 36
CREDIT CARD, OR ON THE AMOUNT OF THE LOAN. 37
 YOUR LENDER MAY PROVI DE A PROMOTIONAL PER IOD, DURING WHICH YOU 38
MAY PAY BACK THE CRE DIT CARD BALANCE OR LOAN BA LANCE WITHOUT 39
INTEREST. AFTER ANY PROMOTIONAL PERIOD ENDS, YOU MAY BE CHARGED 40
INTEREST ON PORTIONS OF THE BALANCE THAT HAVE ALREADY BEEN PAID. 41
 IF YOU PAY LATE OR FAIL TO MAKE PAYMENT: 42
o YOU MAY HAVE TO PAY A PENALTY AND/OR A HIGHER INTEREST RATE; 43
6 SENATE BILL 796

o YOUR LATE OR MISSED PAYMENTS M AY BE REPORTED TO CR EDIT 1
BUREAUS AND MAY HURT YOUR CREDIT RATING; AND 2
o YOU MAY BE SUED. 3
 YOU MAY USE THIS CRED IT CARD OR LOAN TO P AY FOR FUTURE HEALTH 4
SERVICES. 5
 IF YOUR HEALTH CARE P ROVIDER COMPLETED OR SUBMITTED AN 6
APPLICATION FOR A CREDIT CARD OR LOAN ON YOUR BEHALF, YOU MAY FILE 7
A COMPLAINT BY CONTA CTING THE CONSUMER PROTECTION DIVISION OF 8
THE MARYLAND OFFICE OF THE ATTORNEY GENERAL ONLINE AT (INSERT 9
WEBSITE ADDRESS FOR THE DIVISION) OR BY CALLING (INSERT PHONE 10
NUMBER FOR THE DIVISION AND RELATED TOLL–FREE NUMBER). 11

PLEASE READ THE TERMS AND CONDITIONS OF THIS CREDIT CARD OR LOAN.” 12

(2) A PATIENT WHO ELECTS TO APPLY FOR THIRD–PARTY FINANCING 13
SHALL SIGN THE DISCL OSURE PROVIDED BY TH E HEALTH CARE PROVID ER AS 14
REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION. 15

(3) A HEALTH CARE PROVIDER SHALL PROVIDE A PATI ENT WHO 16
ELECTS TO APPLY FOR THIRD–PARTY FINANCING WITH A COPY OF THE SIGNED 17
DISCLOSURE. 18

(4) THE SIGNED COPY OF TH E DISCLOSURE PROVIDE D UNDER 19
PARAGRAPH (3) OF THIS SUBSECTION MAY BE DIGITAL. 20

(B) (1) THE DIVISION SHALL PREPAR E A DISCLOSURE FORM THAT 21
INCLUDES: 22

(I) AN ADVISEMENT THAT HEALTH CARE BILLS PAID FOR WITH 23
A CREDIT CARD ARE NOT CONSIDERED HEALTH CARE DEBT; AND 24

(II) AN ADVISEMENT AS TO A NY FEDERAL OR STATE 25
PROTECTIONS THAT APPLY TO HEALTH CA RE DEBT THAT THE PAT IENT WOULD BE 26
GIVING UP BY PAYING A HEALTH CARE BILL WITH A CREDIT CARD, INCLUDING THAT 27
THE PAYMENT: 28

1. IS NOT SUBJECT TO PRO HIBITIONS AGAINST WA GE 29
GARNISHMENT OR PROPERTY LIENS THAT APPLY TO HEALTH CARE DEBT; AND 30

2. IS NOT SUBJECT TO LIM ITATIONS ON INTEREST 31
RATES THAT APPLY TO HEALTH CARE DEBT. 32

SENATE BILL 796 7

(2) THE DIVISION SHALL PUBLIS H THE DISCLOSURE FOR M 1
PREPARED UNDER PARAG RAPH (1) OF THIS SUBSECTION O N ITS WEBSITE IN 2
ENGLISH AND IN ANY OT HER LANGUAGE DETERMI NED APPROPRIATE BY THE 3
DIVISION. 4

(C) A HEALTH CARE PROVIDER SHALL PROVIDE THE DI SCLOSURES 5
REQUIRED UNDER SUBSECTIONS (A) AND (B) OF THIS SECTION: 6

(1) IN AT LEAST 14 POINT FONT; AND 7

(2) (I) IF PROVIDED BY THE DIVISION, IN THE PRIMARY LANGUAGE 8
OF THE PATIENT; AND 9

(II) IF THE PRIMARY LANGUA GE OF THE PATIENT IS NOT 10
AVAILABLE, IN ENGLISH. 11

(D) A HEALTH CARE PROVIDER IS NOT REQUIRED TO P ROVIDE THE 12
DISCLOSURE UNDER SUB SECTION (A) OF THIS SECTION IF T HE THIRD –PARTY 13
FINANCING IS SOLELY MENTIONED AS A PAYMENT OPTION. 14

14–5105. 15

A TREATMENT PLAN PROVIDED UNDER § 14–5102(A)(1)(II) OF THIS SUBTITLE 16
SHALL: 17

(1) LIST EACH SERVICE ANT ICIPATED TO BE PROVI DED AND THE 18
ESTIMATED COST OF EACH SERVICE; 19

(2) PROVIDE AN ESTIMATE O F THE SHARE OF EACH COST THAT THE 20
PATIENT WILL BE RESPONSIBLE FOR PAYING; 21

(3) INDICATE WHETHER THE PROGRAM COVERS AN ALT ERNATIVE 22
SERVICE THAT IS COVERED BY THE PROGRAM IF THE PATIENT IS COVERED BY THE 23
PROGRAM AND THE HEALTH CARE PROVIDER ACCEPTS THE PATIENT’S COVERAGE; 24

(4) INDICATE THAT A PATIENT WHO IS COV ERED BY THE PROGRAM 25
HAS THE RIGHT TO REQUEST THAT ONLY SERVICES COVERED BY THE PROGRAM BE 26
PROVIDED; 27

(5) INDICATE THAT THE HEA LTH CARE PROVIDER IS REQUIRED TO 28
FOLLOW THE RULES OF THE PROGRAM AND TO PROVIDE ONLY SERVICES COVERED 29
BY THE PROGRAM; 30

8 SENATE BILL 796

(6) INDICATE THAT ANY SER VICES NOT COVERED BY THE PATIENT’S 1
INSURANCE PLAN ARE NOT COVERED; AND 2

(7) INDICATE THAT THE PAT IENT HAS THE RIGHT T O CONFIRM ANY 3
HEALTH CARE BENEFIT OR INSURANCE INFORMA TION BEFORE BEGINNIN G 4
TREATMENT. 5

14–5106. 6

THE ATTORNEY GENERAL MAY ADOPT REGULATIONS NECESSARY TO CARRY 7
OUT THIS SUBTITLE. 8

14–5107. 9

A VIOLATION OF THIS SUBTITLE IS: 10

(1) AN UNFAIR , ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 11
THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 12

(2) SUBJECT TO THE PENALTY AND ENFORCEM ENT PROVISIONS 13
CONTAINED IN TITLE 13 OF THIS ARTICLE. 14

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2026. 16