North Carolina is rolling out a massive $6.5 billion medical debt forgiveness program aimed at relieving balances for low and middle-income residents. Wage garnishment for medical debt is completely banned in the state, meaning collectors cannot legally take money from your paycheck even if they win a lawsuit. Hospitals participating in the state relief initiative … Read more
New York provides the most comprehensive medical debt shield in the country, explicitly banning wage garnishment, property liens, and credit reporting for medical bills. While a collector can still sue you within the state’s 6-year legal window, winning a judgment does not grant them the right to touch your paycheck or your primary residence. Even … Read more
Minnesota recently passed the Debt Fairness Act, introducing some of the strongest consumer protections in the Midwest during 2024 and 2025. Medical debt can no longer be reported to credit bureaus in Minnesota, and wage garnishment to pay for medical debt is now banned. Hospitals are required to screen patients for charity care eligibility before … Read more
Maryland legally bans hospitals and collection agencies from reporting medical debt to Equifax, Experian, or TransUnion, regardless of the type of healthcare bill. This credit reporting ban, combined with a short 3-year statute of limitations, means collectors lose their two most powerful weapons faster in Maryland than almost anywhere else. Maryland hospitals must screen patients … Read more
As of July 1, 2024, a new Connecticut law strictly prohibits healthcare providers and collection agencies from reporting medical debt to credit bureaus. Connecticut does not ban wage garnishment for medical debt; collectors who secure a court judgment can still garnish up to 25% of your disposable earnings. The statute of limitations for collectors to … Read more
State laws offer the strongest protection: While federal rules have fluctuated, 15 states have enacted strict laws that restrict or completely ban medical collections from appearing on your credit file. The employer insurance trap: Most state bans only protect state-regulated health plans. If you get your insurance through a large employer that uses a self-funded … Read more