Recovering from a serious illness and long hospital stay can be challenging enough without a hefty medical bill waiting at the end of it. For most people, this bill is nearly impossible to pay all at once. This debt can come with a range of consequences, from affecting your credit score to even stopping your ability to get future medical care. This is where the Minnesota Debt Fairness Act steps in.
Signed in June 2024, this legislation reforms how creditors collect medical debt, garnish wages and handle bankruptcy. If you’re dealing with medical debt in Minnesota, this law offers three key protections.
Protects consumers from credit reporting
The Debt Fairness Act protects your credit by banning medical providers from reporting your medical debt to credit bureaus. This means unpaid medical bills will not negatively impact your credit score. You won’t have to worry about medical debt affecting your ability to get loans, rent an apartment or even secure a job in the future.
Ensures access to health care
The Debt Fairness Act ensures unpaid bills will not stop you from receiving necessary medical care. This means health care providers cannot withhold treatment based on your outstanding medical debt. It also provides stronger protections for patients when disputing incorrect coding or billing of medical care.
Establishes stronger protections on unethical debt collection
The Act establishes stronger protections against unethical medical debt collection practices. It requires medical providers to publish their medical debt collection practices. Debt collectors must also notify you of your right to hire an attorney or contact the Attorney General regarding the debt.
The new law also prohibits:
- The transfer of any unpaid medical debt to a patient’s spouse
- The use of robocalls for collecting medical debt
- Harassment through automated phone systems
- Debt collectors from threatening to withhold medical services as a tactic to force payment
- Collectors from contacting third parties about your medical debt, protecting your privacy.
In addition to these measures, the Act requires that – if you successfully defend yourself in a medical debt collection lawsuit – the opposing party pays your attorney’s fees.
Are debt collectors crossing the line?
You have rights under the new Debt Fairness Act. If you’re facing aggressive or unfair medical debt collection practices, it may be time to speak with an attorney.
