House Democrats pitch bill to save people from having pay garnished for medical debt
Summary
House Democrats introduced a bill to stop employers from taking part of workers' pay to collect medical debt. The bill would change a law to ban wage garnishment for medical debt across all states, protecting workers from losing income because of unpaid medical bills.Key Facts
- The bill aims to add a rule to the Fair Labor Standards Act that bans wage garnishment for medical debt nationwide.
- Currently, federal law allows up to 25% of a worker’s take-home pay to be garnished for debts, including medical bills.
- Five states already ban wage garnishment for medical debt, including New York and Texas.
- Over 100 million Americans have medical debt, totaling around $220 billion.
- Medical bills cause about 550,000 bankruptcy filings each year.
- Many people skip medical care or cut back on essentials to pay medical debt.
- Health insurance premiums rose 20% in 2026 and may rise 15% more in 2027, partly due to changes under President Trump.
- Millions lost health insurance between 2025 and 2026 after Medicaid cuts and subsidy expirations.
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