New legislation introduced to ease medical debt in Minnesota

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Minnesota Medical Debt Reset Act

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(ABC 6 News) – Attorney General Keith Ellison, Senator Liz Boldon, and Representative Liz Reyer announced the “Minnesota Medical Debt Reset Act” on Friday.

The proposed legislation would invest $5 million to buy and forgive the medical debt of hundreds of thousands of Minnesotans. This would be achieved through a partnership with the national medical debt-forgiveness nonprofit, Undue Medical Debt.

According to Undue Medical Debt, the money invested by this bill could relieve about $500 million in medical debt from roughly 250,000-400,000 Minnesotans.

The bill is aimed to provide relief to Minnesotans who cannot afford to pay back their medical debt. To qualify for relief, your household income must be at or below 400% of the Federal Poverty Guidelines or have medical debt equal to or exceeding 5% of your household income.