ST. PAUL, Minn. — Today, October 1, provisions of the Minnesota Debt Fairness Act – passed by the DFL-controlled Legislature in May – become effective in state law. Authored in the Senate by Senator Liz Boldon (DFL-Rochester) and championed by Attorney General Keith Ellison, the law contains numerous protections and financial guardrails for Minnesotans attempting to pay back medical debt, including:
- Stopping the automatic transfer of medical debt to a patient’s spouse.
- Allowing patients who successfully defend medical debt lawsuits to have their attorney fees paid.
- Prohibiting medical debt from being reported to credit bureaus, protecting patients’ good credit.
- Requiring medical providers to publish their collection practices.
- Banning providers from withholding necessary healthcare due to unpaid debt.
- Limiting wage garnishment practices and extending protections to everyone living and working in Minnesota.
- Creating processes for patients to dispute billing errors.
- Establishing new medical debt collection rights and strengthening protections against predatory collection tactics.
- Expanding bankruptcy protections and shielding more property from collection.
As the new law becomes effective, Senator Boldon released the following statement:
“In my role as a nurse, I see every day how financially devastating medical debt can be for Minnesotans and their families. Medical bills are one of the biggest reasons Americans fall into poverty or file for bankruptcy, and the stress associated with debt can slow a patient’s recovery. It doesn’t have to be this way, and patients deserve better. Thanks to all the advocates who shared their stories, Minnesotans will now benefit from significant protections and financial guardrails. The Minnesota Debt Fairness Act will keep more hardworking folks out of poverty and bankruptcy, and give them some breathing room and a fairer repayment process. I will continue to fight for a healthcare system that prioritizes patients and their wellbeing over profits.”
A more expansive list of provisions in the Minnesota Debt Fairness Act can be found HERE, courtesy of the Office of Attorney General Ellison.
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