Minnesota Law Enhances Protections Against Medical Debt Burden

Wednesday, 2 October 2024, 06:32

Medical debt can be overwhelming, but Minnesota's new law offers crucial protections for residents. This legislation, backed by Attorney General Keith Ellison, provides patients with essential rights against medical debt. With features like limiting garnishment rates and preventing credit reporting, this act is a significant step towards alleviating financial stress for many.
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Minnesota Law Enhances Protections Against Medical Debt Burden

Overview of Minnesota’s Debt Fairness Act

MINNEAPOLIS — Medical debt can create significant hardships for many families, but the recent enactment of Minnesota's Debt Fairness Act may provide much-needed relief. The law offers a range of protective measures aimed at assisting those burdened by financial obligations related to healthcare services. Attorney General Keith Ellison has been a vocal advocate for these changes and highlights the law’s vital components.

Key Provisions of the Law

  • Ban on Reporting Medical Debt: Healthcare providers can no longer report medical debt to credit bureaus.
  • Garnishment Rate Changes: Previously, individuals earning minimum wage faced garnishments of up to 25% for medical debt in collections, now reduced to a flat rate of 10%.
  • Protection for Low Earners: Those earning less than minimum wage are exempt from garnishments.
  • Legal Clinic: Ellison’s office is running a Debt Fairness Legal Clinic to assist affected individuals.

Further Protections Implemented

In addition to these measures, debt collectors are prohibited from using robocalls, making threats, or contacting third parties regarding medical debt. Furthermore, healthcare providers must improve transparency in their debt collection practices, allowing patients to dispute inaccurate billing.


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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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