House Democrats pitch bill to save people from having pay garnished for medical debt
Exclusive: Currently under federal law, up to 25% of a worker’s take-home earnings can be collected
TL;DR
- House Democrats introduced a bill to prevent wage garnishment for medical debt collection.
- The bill would amend the Fair Labor Standards Act to include this ban nationwide.
- Over 100 million Americans face $220 billion in medical debt, with many citing it for bankruptcy.
- Many households cut back on necessities and use savings to pay medical debt.
- Over one-third of Americans skip medical care due to costs.
- At least five states already ban wage garnishment for medical debt.