Minnesota Senate Passes Medical Debt Relief

Bill allows residents to go to court to temporarily halt medical debt collections.

Residents of Minnesota facing problems with unpaid medical bills may have just earned a respite thanks to a new bill from just passed by the State Senate. The medical debt relief bill gives Minnesota residents the opportunity to get a court injunction for the purpose of preventing collectors from stopping “medical care, garnishing wages, causing arrest or taking other Extraordinary Collection Actions.”

The bill will not give a judge the right to decrease the amount of medical debt owed or to remove it from the debtor’s responsibility. It simply delays the collection process, which breaks federal IRS rules, until the resident gets the necessary info regarding the “financial assistance policy.” Still, this would give residents an opportunity to make arrangements to regain financial control without affecting any medical care they may be receiving.

The bill was created by Senator Kevin Dahle and he recently said, “”Right now, individual Minnesotans have absolutely no recourse when faced with a collection action, and that too often lands them in inescapable debt.” The Minnesota House must still vote on the bill before it gets sent to Governor Mark Dayton.

The bill pertains to charges incurred at nonprofit hospitals only and is exclusively for medical debt. Many people in the United States are facing medical debt challenges and it’s been especially tough for Minnesota residents, leading the State Senate to act.

The Minnesota Tribune reported that “13 hospital systems reported a bad-debt increase of $15 million between 2013 and 2014.” One school of thought is that with the Affordable Care Act, more people who are now covered are having a hard time paying the high deductibles, thus forcing them into debt.

If you need assistance with paying your medical debt don’t hesitate to contact Consolidated Credit. We can assess your situation and provide you with the best alternative so you can be debt free. Call us today at 1-888-294-3130 to speak with a certified credit counselor at no charge or request a free consultation by completing our easy online application.

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