New Financial Protections Take Effect In Minnesota With The Launch Of The Debt Fairness Act

New Financial Protections Take Effect In Minnesota With The Launch Of The Debt Fairness Act

As of October 1, Minnesotans are waking up to a new era of financial protections with the Minnesota Debt Fairness Act now in effect. The legislation, signed into law earlier this year, brings significant changes to how medical debt is handled in the state, offering a stronger safety net for individuals grappling with healthcare-related financial burdens.

The Act stops the automatic transfer of medical debt to a patient's spouse and allows for attorney fees to be covered for patients who successfully defend themselves against medical debt lawsuits. Perhaps most notably, it bans the reporting of medical debt to credit bureaus, which serves as a relief for many worried about their credit score. These measures were championed by Senator Liz Boldon and backed by Attorney General Keith Ellison. Senate DFL MN quoted Boldon saying, “In my role as a nurse, I see every day how financially devastating medical debt can be for Minnesotans and their families."

Additional protections include requiring medical providers to publish their collection practices and putt a ban on withholding necessary healthcare due to unpaid debt. The law also limits wage garnishment and extends protections across the state, while introducing processes where patients can dispute billing errors. The creation of new medical debt collection rights is set to tackle predatory tactics often used in the collection process.

The law also broadens bankruptcy protections, making it harder for collectors to target property. This comprehensive approach signifies the state's commitment to maintaining the economic stability of its residents amidst health crises. "Thanks to all the advocates who shared their stories, Minnesotans will now benefit from significant protections and financial guardrails," Boldon added in a sentiment reflecting the collective relief this legislation promises to deliver. More details on the Act's provisions can be found in the Office of Attorney General Ellison.

SOURCE: hoodline