Minnesota Debt Fairness Act Goes Into Law on October 1, 2024,

 On October 1, 2024, significant pieces of the Minnesota Debt Fairness Act took effect. The newly effective provisions of the law aim to make Minnesota’s debt collection system fairer and more just, particularly when it comes to medical debt—that people generally do not ask for, cannot shop for, and have virtually no choice in taking on. On June 17, 2024, Governor Walz signed the Minnesota Debt Fairness Act into law.

Provisions of the Debt Fairness Act effective on October 1, 2024

1. Ban medical debt from being reported to credit reporting agencies.
2. Ban medical providers from withholding medically necessary care due to unpaid debt.
3. Eliminate the old law automatically transferring medical debt to a patient’s spouse.
4. Establish new medical debt collection rights, including:
   1. Parties collecting medical debt cannot use robo dialers to collect debt.
   2. Parties collecting medical debt cannot say medical services will be withheld if the debt is not paid.
   3. Parties collecting medical debt cannot contact third parties to try and collect the debt.
   4. Parties collecting medical debt must notify patients of their right to hire an attorney or contact the Attorney General regarding the debt.
   5. Parties collecting medical debt cannot violate the Fair Debt Collection Practices Act or any other Minnesota statute.
      1. These rights are enforceable by the Attorney General and private right of action, and include attorney fee-shifting and a per-violation statutory damage award pegged to the Consumer Price Index.
5. Require that Minnesotans who successfully defend medical debt collection lawsuits must be paid their attorney’s fees incurred in defending the case.
6. Require medical providers to publish their medical debt collection practices.
7. Establish new process for patients to dispute incorrect coding or billing of medical care.

A full list of the provisions of the Minnesota Debt Fairness Act and when they take effect is available here. On August 1, 2024, provisions of the bill improving bankruptcy protections took effect. On April 1, 2025, new income-based limits on wage garnishment will take effect. To read more click here.