Lawmakers in at least eight states have introduced legislation in the past year aimed at limiting wage garnishment for medical debt, KFF Health News reported Feb. 20.
Bills introduced in Colorado, Florida, Hawaii, Indiana, Maine, Michigan, Ohio and Washington build on efforts in other states in recent years and come as the Consumer Financial Protection Bureau maintains that states cannot regulate consumer credit reports.
Courts approve about 14,000 wage garnishment requests in medical debt cases each year in Colorado — including cases involving urban hospitals, large health systems, small rural hospitals, physician groups and public ambulance services, a KFF Health News investigation found.
While wage garnishment is one way creditors recoup unpaid bills, several states allow creditors to garnish bank accounts or place liens on homes. Creditors are typically required to obtain court approval before requiring an employer to withhold a portion of an individual’s earnings, KFF reported.
Garnishing patients’ wages for medical debt is legal in all but a few states, according to the Commonwealth Fund.
Beyond legislation, some states have pursued broader medical debt relief efforts. After issuing its eighth and final round of relief letters, New Jersey has abolished nearly $1.6 billion in medical debt as of January through a partnership with Undue Medical Debt. Individual health systems have also forgiven patient debt in partnership with the organization, including New Orleans-based Ochsner Health and Greenville, N.C.-based ECU Health.
The post 8 states move to curb wage garnishment for medical debt appeared first on Becker's Hospital Review | Healthcare News & Analysis.
Source: Read Original Article
