[ST. PAUL, MN] – Governor Tim Walz and Lieutenant Governor Peggy Flanagan today announced their support for a legislative package to ease the burden of medical debt on Minnesotans. The provisions are part of the Minnesota Debt Fairness Agenda, which Attorney General Keith Ellison has developed with stakeholders over the last several months and which will soon be introduced by Sen. Liz Boldon and Rep. Liz Reyer.

The Act’s provisions concerning medical debt include banning medical debt from affecting someone’s credit score and cutting interest on medical debts from 8 to 0 percent. One in 10 U.S. adults owes at least $250 in medical debt.

“There’s no way to predict a trip to the emergency room. I’m proud to support this legislation to help Minnesotans manage the unpredictable financial burden of medical care that can wipe out everything from your credit score to your savings account,” said Governor Walz. “This plan will lower costs, help Minnesotans manage their medical debt, and protect them in their most challenging moments.”

“Medical debt is one of the most common barriers to financial security for families. As a mother and daughter who cared for my parents as they aged, I know these costs add up fast,” said Lieutenant Governor Flanagan. “I’m proud to support a proposal that will protect Minnesotans and lift financial burdens off families’ shoulders. This proposal is about helping families save money, build wealth, and feel secure in their day to day lives.”

"People rarely have a choice about taking on medical debt. Minnesotans trying to catch up with their medical debts should be able to do so without being exploited or pulled into poverty," said Minnesota Attorney General Keith Ellison. "This plan will strengthen protections for people dealing with medical debt and make it fairer, easier, and more dignified for Minnesotans to gain their financial footing and not get trapped in an unfair, vicious cycle."

The Debt Fairness Act would:
• Ban medical debt from being reported to credit bureaus
• Reduce interest on medical debts from 8 to 0 percent
• Ban the withholding of medical services due to unpaid debt
• Remove all medical debt creditors’ ability to intercept tax refunds through revenue recapture
• Repeal statutory liability for one’s spouse’s medical debt
• Require insurers to count copay assistance paid on behalf of a patient to count towards their annual deductible and out-of-pocket limits
• Prohibit charging patients fees for coding errors

“Every Minnesotan should be able to get the care that they need without fear of facing devastating debt or bankruptcy. In my work as a practicing nurse, I hear from patients far too often that this is not the reality for many, in part because of predatory debt collection practices that put profits over people,” said Sen. Boldon. “I’m proud to author this legislation alongside Rep. Reyer and in partnership with the Attorney General’s Office, and I look forward to working with my Senate colleagues this session to protect the financial well-being of Minnesota families.”

“Medical debt is one of the most widespread and devastating facts of life in our current health care system, but it doesn’t have to be,” said Rep. Reyer. “These pieces of legislation take an important step to protect patients and their families from debt and help them experience economic stability."

In 2023, the Access to Justice Committee of the Minnesota State Bar Association released a comprehensive report on debt-collection lawsuits across the state. The report reveals that debt-collection cases dominate Minnesota civil courts and that confusing policies can be burdensome for the many Minnesotans without legal counsel. It also finds that 82 percent of debt lawsuits filed in district courts end in an automatic win for the plaintiff, which leads to court-authorized garnishment of wages and bank accounts, and that there exist significant disparities in race and income, with Black, Latino/a, and low-income Minnesotans more likely to be sued.