Too Many Mainers Take on Unnecessary Medical Debt

Maine’s Policymakers Must Take Action to Protect Mainers

from Medical Debt

As Maine residents struggle to pay for everyday expenses, fewer funds are set aside for healthcare. Findings from a 2022 Kaiser Family Foundation survey showed that almost half of adults nationwide would be unable to pay an unexpected medical bill over $500 without borrowing funds. These statistics are very similar to what we see in Maine. A 2024 survey conducted on behalf of United States of Care and Consumers for Affordable Health Care (CAHC), Perceptions of Health Care Affordability and Hospital Facility Fees in Maine, found that two out of three Mainers say they would have difficulty paying an unexpected $500 medical expense.

Too many Mainers are incurring debt to cover the cost of care. The CAHC survey further reported that half of all surveyed Mainers find it difficult to afford healthcare. Four out of ten Mainers have taken on medical debt within the past five years, and three out of four who took on medical debt in the past five years still have that debt.

This is an issue that is impacting many older adults as well. Nationally, nearly 4 million adults 65 and older collectively carry approximately $54 billion worth of unpaid medical bills even though almost all have Medicare and nearly half pay for a second layer of private insurance.

One way some Mainers attempt to cover the cost of their medical care is through medical credit cards. According to the Consumer Financial Protection Bureau (CFPB), consumers are being targeted to apply for these “deferred interest” credit cards through health providers. Medical credit cards are routinely advertised as “no interest” or “interest free,” but often carry very high interest rates, up to 29.9 percent after the promotional period. These prohibitive interest rates can pose additional risk to Mainers’ financial security.

The CFPB estimates that U.S. residents paid $1 billion in deferred interest on medical credit cards and loans from 2018 to 2020. ​CFPB goes on to estimate that consumers used medical cards and loans to cover nearly $23 billion in healthcare expenses for over 17 million medical purchases between 2018 and 2020. This issue is particularly troubling because in some cases, patients sign up for a medical card even though financial assistance programs would cover some of their costs.

Maine’s legislature has an opportunity to intervene and address the medical debt problem. Right now, policymakers are considering LD 1955 and LD 2174. Sponsored by Speaker of the House Rachel Talbot Ross, LD 1955, if passed, would provide support to low-income Mainers by increasing eligibility for Maine’s Hospital Free Care program. Nonprofit hospitals are required by federal and Maine law to provide community benefits, including free care. The amount of hospital free care provided in Maine has decreased by millions of dollars over the past several years as access to health coverage has increased and Maine’s uninsured rate has decreased.

LD 2174, sponsored by Senate President Troy Jackson, as amended, would still allow medical credit cards to be offered to patients in Maine, but would provide patients with some basic consumer protections. This includes prohibiting signing up patients for a card while they are in a recovery or treatment room. In addition, LD 2174 extends important protections of the Maine Fair Debt Collection Practices Act and Maine Fair Credit Reporting Act to medical credit card creditors attempting to collect unpaid payments from consumers.

Maine policymakers can ease Mainers’ stress regarding their needed medical care by passing LD 2174 and LD 1955. Mainers who are in crisis situations should not be burdened with unnecessarily taking on additional medical debt. Improving access to hospital financial assistance programs, including Hospital Free Care, will help low-income Mainers who are struggling to make ends meet. Consumers should not have to navigate predatory offers for medical credit cards that carry high interest. Their first and only concern should be how to care for themselves and their loved ones, ensuring they receive the healthcare they need without going further into debt.


Bridget Quinn, AARP Maine Advocacy and Outreach Director
Carl Toney, AARP Volunteer Executive Council Member

The above was published as an opinion editorial in the Bangor Daily News online on 3/22/24 and in print on 3/23/24

To find your legislators and their contact information, visit: https://www.maine.gov/portal/government/edemocracy/voter_lookup.php