States Push to Curb Medical Debt Wage Garnishment

Lawmakers in at least eight states aim to rein in wage garnishment for unpaid medical bills.

Feb. 24, 2026 at 7:00am

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Lawmakers in at least eight states this year are aiming to reel in wage garnishment for unpaid medical bills. The legislation introduced in Colorado, Florida, Hawaii, Indiana, Maine, Michigan, Ohio, and Washington builds on efforts made in other states in past years. This latest push for patient protections comes as the Trump administration has backed away from federal debt protections, health care has become more costly, and more people are expected to go without medical coverage or choose cheaper but riskier high-deductible insurance plans that could lead them into debt.

Why it matters

Wage garnishment can have severe consequences for patients, leading to financial hardship and even bankruptcy. This legislation aims to provide greater protections for patients and ensure that seeking medical care does not result in financial ruin.

The details

The legislation introduced in these states would ban wage garnishment for medical debt, limit bank garnishments, prevent payment plans from exceeding 4% of weekly net income, require creditors to check if uninsured patients are eligible for public health insurance before collecting, and bar creditors from collecting on bills that are more than three years old. Supporters argue these measures are necessary to prevent medical debt from driving people into bankruptcy, while opponents claim the legislation could lead to higher costs and financial risk for healthcare providers.

  • The Colorado legislation was introduced on February 19, 2026.
  • The Washington state legislation was introduced on February 2, 2026.

The players

Javier Mabrey

A Democratic state representative in Colorado who introduced legislation to ban wage garnishment for medical debt.

Lauren Jones

The legal and policy director for the National Center for Access to Justice, which scores states on the fairness of their laws to consumers who get sued over debt.

Marko Liias

A Democratic state senator in Washington who is spearheading legislation to protect a larger portion of low-wage earnings from garnishment.

Mindy Chumbley

The owner of a Washington-based collections company and a board member of ACA International, an association of credit and collection professionals.

Dana Kennedy

The co-executive director at the Denver-based Center for Health Progress, a health advocacy group that has been working with lawmakers on the Colorado measure.

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What they’re saying

“In the wealthiest country on Earth, people are going bankrupt, suffering wage garnishment, just because they get sick.”

— Javier Mabrey, Colorado state representative

“The creditor is taking the money directly out of somebody's paycheck, and so it doesn't leave people with any choice to say, 'I need to prioritize food for my children.'”

— Lauren Jones, Legal and policy director, National Center for Access to Justice

“No one is saying, 'Don't get paid for your services.' We're saying getting health care should not lead to financial ruin for people.”

— Dana Kennedy, Co-executive director, Center for Health Progress

“Medical debt is typically different from other forms of indebtedness. You could choose to keep driving your old car or buy a new one and take on debt for that. You could upgrade your home. You could buy consumer appliances. There's not usually that voluntary element in a health care context.”

— Mike Weissman, Colorado state senator

“Washington has made sweeping changes to medical debt policy year after year without pausing to study the cumulative impact. Our clients are reporting clinic closures, urgent care centers shutting down, staffing shortages, and rural facilities struggling to stay open.”

— Mindy Chumbley, Owner, Washington-based collections company and ACA International board member

What’s next

The judge in the Colorado case will decide on Tuesday whether or not to allow the proposed legislation to move forward.

The takeaway

This legislation highlights the growing concern over the financial burden of medical debt and the need to find a balance between protecting patients and ensuring healthcare providers can recoup their costs. The push for these reforms across multiple states signals a broader shift in how policymakers are approaching the issue of medical debt.