MN HF4100

Creates new medical debt protections requiring health care providers to publish collection policies, prohibiting denial of medically necessary treatment for unpaid medical debt, and establishing procedures for billing disputes over miscoded services.

Establishes Chapter 332C regulating debt collectors collecting medical debt, prohibiting deceptive practices (false lawyer threats, wage garnishment implications, AI chatbots after opt-out), with penalties up to $1,000 per violation and triple damages for willful violations.

Increases debtor exemptions from garnishment including $4,000 for bank deposits, expands homestead and personal property protections, raises motor vehicle exemptions to $10,000-$100,000, and adds new exemptions for household tools ($3,000) and property tax refunds ($3,000).

Prohibits wage garnishment acceleration or vehicle repossession when debtor files bankruptcy, sets interest rate at $4 per $100 annually for medical debt contracts, and removes spousal liability for medical debt unless living together.

Requires Attorney General to review and revise garnishment forms and notices into plain language by consulting with creditor associations and consumer advocacy groups, effective August 1, 2024.