Medical debt relief: MN leaders announce new proposed bill
Medical debt relief legislation announcement [RAW]
Minnesota leaders announced new legislation meant to address medical debt for residents in the state. The legislation includes a partnership with Undue Medical Debt, a nonprofit that focuses on medical debt forgiveness.
MINNEAPOLIS (FOX 9) - The Minnesota Attorney General, joined by DFL legislators and St. Paul Mayor Melvin Carter, announced new proposed legislation aimed at reducing the burden of medical debt.
Raw footage of the news conference can be viewed above.
Minnesota Medical Debt Reset Act
What they're saying:
Proponents say the bill, titled the Minnesota Medical Debt Reset Act, would make a one-time, $5 million appropriation to buy and forgive the medical debt of "hundreds of thousands of Minnesotans" by partnering with a nonprofit.
That nonprofit, Undue Medical Debt, reportedly estimates that $5 million could relieve about "$500 million in medical debt from roughly 250,000 – 400,00 Minnesotans", according to a news release from the office of Attorney General Keith Ellison.
Minnesota Attorney General Keith Ellison released a written statement that said, "When last year's Debt Fairness Act went into effect, I promised that helping Minnesotans with the burden of debt so they can afford their lives would remain a priority for my Office and these legislative champions. "The Minnesota Medical Debt Reset Act is the next phase of that crucial work. When passed, this bill will be a win for struggling Minnesotans who didn’t choose to get sick and who didn't ask for the debt that came along with that. It will support our hospitals by helping them fulfill their commitment to community wellbeing, while also getting uncollectable debt off their balance sheets. And at a time when the politics of cruelty are on full display in the White House, it will be a beacon that Minnesota's commitment to helping our neighbors remains as strong as ever."
How would it work?
By the numbers:
The news release states that Minnesota residents must meet one of the qualifications for the Medical Debt Reset:
- Have a household income at or below 400% of the federal poverty guidelines, or
- Have a medical debt equal to or exceeding 5% of their household income
U.S. citizens owe a collective debt of $220 billion, according to a study by Health System Tracker, a nonprofit that monitors the U.S. Healthcare system.
The Debt Fairness Act
The backstory:
Minnesota's Debt Fairness Act was passed in June 2024, which included several medical debt reforms.
Measures within the act included banning the automatic transfer of medical debt to a spouse, banning reporting medical debt to credit bureaus, and banning denying necessary medical care on the basis of unpaid bills.
READ MORE: Debt Fairness Act signed into MN law offering protections, reform
‘Fairer’ debt bill at Minnesota Legislature
Medical debt is less likely to be a big gut punch to families under a new set of rules the Minnesota House is expected to pass on Monday. FOX 9's Corin Hoggard has the story.
The bill was supported by both faith and union leaders across the state.
READ MORE: ‘Fairer’ debt championed by Minnesota pastors, union leaders
The Source: A news release from the Minnesota Attorney General's Office and live footage of the news conference.