New Minnesota Law Enhances Medical Debt Protections

Overview of Minnesota's Debt Fairness Act

The state of Minnesota has taken significant strides to address the issue of medical debt through the implementation of the Debt Fairness Act. This law, effective October 1, introduces important reforms that protect patients from financial hardship arising from medical expenses.

Key Features of the Debt Fairness Act

• Prohibits reporting medical debt to credit bureaus.
• Bans transferring medical debt to spouses.
• Prevents healthcare providers from denying necessary care while patients have outstanding debt.
• Restricts garnishment of wages: now capped at a flat rate of 10% for low-income earners.
• Exempts those earning below minimum wage from garnishment.

These changes were highlighted in a recent press event with Attorney General Keith Ellison, who emphasized the importance of fair treatment for individuals burdened by medical debt.

Future Support for Minnesotans

In conjunction with the new law, Ellison's office will host a Debt Fairness Legal Clinic, offering advice and support to residents grappling with medical debt issues. This clinic aims to provide essential resources and guidance, promoting a healthier approach to managing medical expenses.

Additional Consumer Protections

• Debt collectors are now banned from robocalls and contacting third parties.
• Healthcare providers must ensure transparency in their debt collection processes.
• New protocols for disputing inaccurate billing are now mandatory.