A wide-ranging proposal would prohibit medical debt credit reporting and collections on out-of-statute debt and amend the statute of limitations, among other changes.
02/13/2024 10:00 A.M.
1 minute read
Lawmakers in Minnesota provided a glimpse of a sweeping proposal under consideration—the Minnesota Debt Fairness Act—as they kicked off the legislative session for 2024 this week.
The proposal, part of the Minnesota Debt Fairness Agenda spearheaded by Attorney General Keith Ellison, includes items focused on medical debt that Gov. Tim Walz pledged to support, according to a news release.
Related to medical debt, the proposal would prohibit medical debt credit reporting, reduce interest on medical debts from 8% to 0%, and remove bans on withholding medical care due to outstanding debts, among other things.
ACA International has not seen the proposed legislation, but a draft outline shows the bill would go farther on debt collection controls.
It would prohibit collecting on out-of-statute debt or otherwise attempting to “revive” a debt and reduce garnishment wages and the statute of limitations.
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