Gov. Janet Mills signs law to bar medical-debt liens and wage garnishment, urges federal action

Governor Janet Mills announced she signed a law barring medical-debt collectors from placing liens on homeowners’ property or garnishing wages, calling the change a necessary expansion of protections for Maine families facing illness-related bills.

Mills framed the action with a personal anecdote about delivering newspapers as a child while recalling her father’s defense of a man threatened with jail over medical bills. Citing a report from Maine Consumers for Affordable Health Care, she said nearly half of Maine households incurred medical debt in the last two years and that one in three respondents said that debt harmed their ability to pay for basic necessities such as food and heat.

The governor said the state is not waiting for federal action. "I signed legislation to protect Maine people by prohibiting medical debt collectors from placing a lien on somebody's home or taking their wages, garnishing their wages," Mills said. She described the new law as building on an earlier statute she signed that barred medical debt from appearing on consumer credit reports to protect Mainers’ credit scores.

Mills credited Senator Donna Bailey as the bill sponsor and said Bailey, a cancer survivor, has championed efforts to shield residents from the harmful effects of medical debt. Mills quoted Bailey, saying, "medical debt is not the result of poor choices. It's the result of illness, injury that can happen to anyone in a health care system that too often leaves people financially vulnerable."

Mills also highlighted state-level health coverage expansions during her tenure, saying she expanded Medicaid on her first day in office and that "nearly 230,000 Maine people" have gained access to care, including preventive screenings and substance use and mental health treatment.

While urging Congress to act — "Universal health care is an idea whose time has come," she said — Mills said Maine will continue pursuing state policies to reduce health care costs and protect residents from financial harm. The message did not include an implementation timeline or an effective date for the recently signed measure.

Mills closed by reiterating the state's goal that illness or accident should not cost someone their home or livelihood.