Governor Tim Walz, Lieutenant Governor Peggy Flanagan, and Attorney General Keith Ellison announced their support this week for legislation aimed at providing relief for Minnesotans struggling with medical debt.
The proposed Minnesota Debt Fairness Act includes several key provisions to help those dealing with medical debt:
- Banning medical debt from being reported to credit bureaus
- Reducing interest on medical debts from 8% to 0%
- Prohibiting medical providers from denying care due to unpaid medical bills
- Protecting a minimum of $5,000 in bank accounts from seizure for medical debt
- Repealing laws that transfer medical debt to a spouse
“Medical debt should not devastate people’s financial lives,” said Governor Walz. “This legislation will help Minnesotans manage medical costs and protect them during vulnerable times.”
Attorney General Ellison has been developing the proposal with lawmakers and stakeholders. The bill will soon be introduced in the Minnesota Legislature by Senator Liz Boldon and Representative Liz Reyer.