Governor Walz signs Minnesota Debt Fairness Act

(KNOX) – A ceremonial bill signing for legislation will help ease the burden of medical debt on Minnesotans.

In signing the Minnesota Debt Fairness Act Governor Tim Walz says “Life-saving cancer treatments or a trip to the emergency room shouldn’t cause a tanked credit score or a lifetime of debt.”

The legislation bans medical providers from withholding medically necessary care due to unpaid debt. It also prevents medical debt from impacting credit scores. Medical debt will not automatically transfer to a patient’s spouse…and are stronger protections from unethical debt collectors.

The Minnesota Debt Fairness Act:
• Establishes automatic income-based wage garnishment levels, ranging from 10% to 25%, rather than the flat 25% garnishment cap that previously existed;
• Extends Minnesota’s wage garnishment protections to independent contractors and everyone living and working in Minnesota.