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Advocates press committee to raise wage protections for medical-debt garnishment
Summary
SB 6105 would raise the garnishment exemption for medical-debt judgments to 60 times the state minimum hourly wage (or retain 80% of disposable earnings), require conspicuous labeling of garnishment papers as medical, and expand notice to debtors. Supporters said it protects patients; collectors and providers warned of provider impact and implementation problems.
The Senate Law & Justice Committee heard competing testimony Feb. 2 on SB 6105, a bill that would increase wage protections for judgments arising from medical debt and require garnishment paperwork to clearly state it is for medical debt.
Committee staff explained current law exempts the greater of a multiple of the state minimum wage or 80% of disposable earnings from garnishment for consumer debt; SB 6105 raises the minimum-wage multiplier to 60 times the hourly minimum for medical-debt garnishments while retaining the 80% option for higher earners, and instructs that writ captions and debtor notices must…
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