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Senate hearing weighs LB 174 to lower wage‑garnishment caps for medical debt
Summary
State Sen. Jason Prokop introduced LB 174 at a Judiciary Committee hearing that drew providers, patient advocates and medical students to urge limits on wage garnishment for medical debt.
State Sen. Jason Prokop introduced LB 174 at a Judiciary Committee hearing that drew providers, patient advocates and medical students to urge limits on wage garnishment for medical debt.
Prokop told the committee the bill would reduce the federal‑law maximum garnishment that commonly applies to medical‑debt collectors: non‑heads of household from 25% to 20%, and heads of household from 15% to 10%. The bill also seeks to clarify the process collectors must follow before taking the higher rate for people claimed not to be heads of household.
Prokop said medical debt is widespread in Nebraska and often not a result of discretionary spending: roughly 11.6% of Nebraska adults report medical…
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