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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