Medical Debt Collection Protections

Current understanding

Michigan proposals to limit creditor remedies for unpaid medical debt. HB5255 would create a new act prohibiting foreclosure of real property and garnishment of wages to collect medical debt; it is tie-barred to HB5254. As of the latest finding, HB5255 has passed one chamber.

Evidence log

• 2026-03-11 — Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: SB 0701’25: 2026 — SB0702 (passed one chamber, tie-barred to SB0701) would create a new act prohibiting foreclosure of real property and garnishment of wages to collect medical debt, mirroring HB5255 as the Senate-side companion in the medical debt protection package. (novelty: 3)
• 2026-03-11 — Consumer credit: interest rates; maximum interest rate allowed for medical debt; modify. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: SB 0702’25: 2026 — SB0701 (passed one chamber, tie-barred to SB0702) would amend sec. 3 of 1976 PA 331 (MCL 445.903) under the Consumer Protection Act to lower the maximum interest rate permitted on medical debt, extending the Michigan medical debt protection package into interest rate limits alongside garnishment/foreclosure (HB5254/HB5255) and credit reporting (SB0451/HB6073). (novelty: 2)
• 2026-03-11 — Consumer credit: credit reports and reporting agencies; collection and reporting of medical debt information; regulate. Creates new act.: 2026 — SB0451 (passed one chamber) would create a new act regulating collection and reporting of medical debt information by credit reporting agencies, adding a Senate-side companion to the medical debt protection package alongside HB5254/HB5255 (garnishment/foreclosure limits) and HB6073 (credit reporting). (novelty: 3)
• 2026-06-18 — Health facilities: hospitals; hospital cost review board act; establish. Creates new act. TIE BAR WITH: HB 6117’26, HB 6118’26: cross-connection with hospital-cost-review-board-act: Cost review of hospital charges upstream could reduce the volume of medical debt subject to downstream collection protections. (novelty: 3)
• 2026-06-23 — Consumer credit: credit reports and reporting agencies; collection and reporting of medical debt information; regulate. Creates new act.: 2026 — HB6073 (passed one chamber) would create a separate new act regulating collection and reporting of medical debt information by credit reporting agencies, extending the Michigan medical debt protection package beyond garnishment/foreclosure limits into consumer credit reporting. (novelty: 3)
• 2026-06-23 — Health facilities: hospitals; hospital financial assistance act; enact. Creates new act.: HB6071 (passed one chamber) would enact a separate Hospital Financial Assistance Act governing hospital charity care, a complementary front to medical debt limits addressed by HB5254/HB5255. (novelty: 3)

Open questions

Related