asset_type: jurisdictional-variation

body: Since 2022, at least nine states have passed medical-debt-specific consumer protection statutes on top of ordinary debt-collection law: a cap on the interest rate a hospital or debt buyer may charge on medical debt, a minimum waiting period before debt can be sold or a suit filed, a ban on wage garnishment or a lien on the patient's home for medical debt, or a dollar floor below which a hospital may not sue at all. Each state uses a different mechanism and a different number, several were enacted or took effect in the last 12 months (Louisiana, Rhode Island, Virginia, Maryland, Maine, Colorado, New Jersey, New York), and the only free 50-state assembly (Commonwealth Fund, researched through June 2025) already predates most of them. A patient or advocate asking 'can they charge me interest on this hospital bill' or 'can they garnish my wages for this' gets a different, checkable, statute-backed answer depending on the state.

key_field: jurisdiction

licence: unknown

title: Medical Debt Interest Caps and Collection Restrictions by State

type: dataset


body:
**jurisdiction:** Colorado

**interest_rate_cap:** THREE PERCENT PER ANNUM

**statute_citation:** C.R.S. 5-12-102(5)(a)

> Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 5-12-102, add (5) as follows: 5-12-102. Statutory interest - definition. (5) (a) THE MAXIMUM RATE OF INTEREST ON MEDICAL DEBT IS THREE PERCENT PER ANNUM.

Source: <https://leg.colorado.gov/sites/default/files/2023a_093_signed.pdf>

interest_rate_cap: THREE PERCENT PER ANNUM

jurisdiction: Colorado

title: Colorado — Medical Debt Interest Caps and Collection Restrictions by State

type: jurisdictional-variation


body:
**jurisdiction:** Louisiana

**interest_rate_cap:** three percent per annum

**statute_citation:** La. R.S. 51:1503

> §1503. Interest rate limitation 18 Interest on medical debt arising from medically necessary care shall not 19 exceed three percent per annum. Any contractual provision imposing a higher 20 rate is void.

Source: <https://www.legis.la.gov/legis/ViewDocument.aspx?d=1481256>

interest_rate_cap: three percent per annum

jurisdiction: Louisiana

title: Louisiana — Medical Debt Interest Caps and Collection Restrictions by State

unverified_fields: jurisdiction


body:
**jurisdiction:** Maine

**wage_garnishment_restriction:** The garnishment of a consumer's salary or wages may not be issued for a judgment in any action in which the claim against the consumer is based on medical debt

**property_lien_restriction:** An execution against a consumer's principal place of residence may not be filed for a judgment in any action in which the claim against the consumer is based on medical debt

**statute_citation:** 9-A M.R.S.A. Sec. 5-116-A(5), (6) (2026 Me. Laws ch. 649)

> Be it enacted by the People of the State of Maine as follows: Sec. 1. 9-A MRSA §5-105, sub-§4 is enacted to read: 4. A court may not make, execute or enforce an order or process under this section based on medical debt as defined in Title 32, section 11002, subsection 7-A. Sec. 2. 9-A MRSA §5-116-A, sub-§5 is enacted to read: 5. Prohibition of liens on principal place of residence. An execution against a consumer's principal place of residence may not be filed for a judgment in any action in which the claim against the consumer is based on medical debt. For the purposes of this subsection, "medical debt" has the same meaning as in Title 32, section 11002, subsection 7-A. Sec. 3. 9-A MRSA §5-116-A, sub-§6 is enacted to read: 6. Prohibition of salary or wage garnishment. The garnishment of a consumer's salary or wages may not be issued for a judgment in any action in which the claim against the consumer is based on medical debt.

Source: <https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0818&item=3&snum=132>

jurisdiction: Maine

title: Maine — Medical Debt Interest Caps and Collection Restrictions by State


body:
**jurisdiction:** Maryland

**wage_garnishment_restriction:** A hospital may not request a writ of garnishment of wages or file an action that would result in an attachment of wages against a patient to collect debt owed on a hospital bill if the patient is eligible for free or reduced–cost care under § 19–214.1 of this subtitle.

> (f) (1) A hospital may not force the sale or foreclosure of a patient’s primary residence to collect a debt owed on a hospital bill. (2) A hospital may not request a lien against a patient’s primary residence in an action to collect debt owed on a hospital bill. (3) (i) A hospital may not give notice to a patient under subsection (h) of this section until after 240 days after the initial bill was provided. (ii) If a hospital files an action to collect the debt owed on a hospital bill, the hospital may not request the issuance of or otherwise knowingly take action that would cause a court to issue: 1. A body attachment against a patient; or 2. An arrest warrant against a patient. (4) A hospital may not request a writ of garnishment of wages or file an action that would result in an attachment of wages against a patient to collect debt owed on a hospital bill if the patient is eligible for free or reduced–cost care under § 19–214.1 of this subtitle.

**property_lien_restriction:** A hospital may not request a lien against a patient’s primary residence in an action to collect debt owed on a hospital bill.

> (f) (1) A hospital may not force the sale or foreclosure of a patient’s primary residence to collect a debt owed on a hospital bill. (2) A hospital may not request a lien against a patient’s primary residence in an action to collect debt owed on a hospital bill. (3) (i) A hospital may not give notice to a patient under subsection (h) of this section until after 240 days after the initial bill was provided. (ii) If a hospital files an action to collect the debt owed on a hospital bill, the hospital may not request the issuance of or otherwise knowingly take action that would cause a court to issue: 1. A body attachment against a patient; or 2. An arrest warrant against a patient. (4) A hospital may not request a writ of garnishment of wages or file an action that would result in an attachment of wages against a patient to collect debt owed on a hospital bill if the patient is eligible for free or reduced–cost care under § 19–214.1 of this subtitle.

**collection_delay_or_suit_restriction:** Prohibit the hospital from filing a civil action to collect a debt against a patient whose outstanding debt is at or below $500

> (6) Prohibit the hospital from filing a civil action to collect a debt against a patient whose outstanding debt is at or below $500;

**statute_citation:** Md. Code, Health-General § 19–214.2(b)(6), (f)(2), (f)(4)

Source: <https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=ghg&section=19-214.2&enactments=false>

jurisdiction: Maryland

title: Maryland — Medical Debt Interest Caps and Collection Restrictions by State


body:
**jurisdiction:** New Jersey

**interest_rate_cap:** three percent per annum

**wage_garnishment_restriction:** garnish the wages of a patient with annual income less than 600 percent of the federal poverty level to collect medical debt owed by that patient

**collection_delay_or_suit_restriction:** until 120 days after the first bill for a medical debt has been sent and the creditor or debt collector has offered the patient who owes the medical debt a reasonable payment plan

**statute_citation:** N.J.S.A. 56:11-59, 56:11-60 (P.L.2024, c.48)

> 4. a. Notwithstanding any provision of law or regulation to the contrary, except as otherwise provided in subsection c. of this section, a medical creditor or medical debt collector shall not engage in any collection actions until 120 days after the first bill for a medical debt has been sent and the creditor or debt collector has offered the patient who owes the medical debt a reasonable payment plan. b. At least 30 days before taking any collection actions, a medical creditor or medical debt collector shall provide to the patient at least one additional bill and a notice containing the following: (1) identifying the collection actions that will be initiated in order to obtain payment; and (2) providing a deadline after which such collection actions will be initiated, which date is no earlier than 30 days after the date of the notice. c. Any communication made by a medical creditor or medical debt collector to a patient in the course of trying to collect a medical debt shall include a statement, in at least 14-point boldface font, that the medical creditor or medical debt collector has not reported the debt to a consumer reporting agency and that if the debt, or any part of it, has been reported to a consumer reporting agency, the portion reported is void. d. A medical creditor shall not sell a patient’s debt to another party unless, prior to the sale, the medical creditor has entered into a legally binding written agreement with the medical debt buyer of the debt pursuant to which the medical debt buyer or collector is prohibited from engaging in any actions in paragraphs (2) and (3) of the definition of “collection action” in section 2 of P.L.2024, c.48 (C.56:11-57) and from otherwise seeking to obtain payment for the health care service. e. (1) A medical creditor or medical debt collector shall not engage in any collection actions against a patient who accepts and complies with the terms of a reasonable payment plan offered by the medical creditor or medical debt collector pursuant to this section. A medical creditor or medical debt collector shall not charge an interest rate of more than three percent per annum on late payments to a medical debt subject to a reasonable payment plan and shall provide a grace period of at least 60 days for late payments. (2) Acceptance of a reasonable payment plan pursuant to this section by a patient shall not constitute an admission that the debt is valid. A patient who accepts a reasonable payment plan shall retain any legal defenses that would otherwise be available in a collection action. C.56:11-60 Medical creditor, debt collector, interest rates, limited wage garnishing. 5. A medical creditor or medical debt collector shall not: a. charge an interest rate on a medical debt of more than three percent per annum. The interest rate that shall apply to any judgment on medical debt shall be calculated pursuant to applicable court rules but shall not exceed three percent; or b. garnish the wages of a patient with annual income less than 600 percent of the federal poverty level to collect medical debt owed by that patient.

Source: <https://pub.njleg.gov/Bills/2024/PL24/48_.HTM>

jurisdiction: New Jersey

title: New Jersey — Medical Debt Interest Caps and Collection Restrictions by State


body:
**jurisdiction:** New York

**wage_garnishment_restriction:** wage garnishment due to money judgments arising from actions brought by hospitals or health care professionals

**property_lien_restriction:** liens against their primary residence

**statute_citation:** N.Y. C.P.L.R. 5201(b), 5231(b) (2022 N.Y. Laws ch. 648)

> Protects patients from liens against their primary residence and wage garnishment due to money judgments arising from actions brought by hospitals or health care professionals.

Source: <https://assembly.state.ny.us/leg/?default_fld=&leg_video=&bn=A07363&term=2021&Summary=Y&Actions=Y&Text=Y>

jurisdiction: New York

property_lien_restriction: liens against their primary residence

title: New York — Medical Debt Interest Caps and Collection Restrictions by State


body:
**jurisdiction:** Rhode Island

**interest_rate_cap:** not less than one and a half percent per annum (1.5% p.a.) nor more than four percent per annum (4% p.a.)

**statute_citation:** R.I. Gen. Laws Sec. 6-26-11

> R.I. Gen. Laws § 6-26-11 § 6-26-11. Medical debt interest cap. (a) For purposes of this section “medical debt” means an obligation of a consumer to pay an amount for the receipt of healthcare services as defined by § 27-81-3, products, or devices, owed to a healthcare facility or a healthcare professional as defined by § 27-81-3. (b) Interest on medical debt shall be limited to the rate of interest equal to the weekly average one-year constant maturity Treasury yield, but not less than one and a half percent per annum (1.5% p.a.) nor more than four percent per annum (4% p.a.) as published by the Board of Governors of the Federal Reserve System, for the calendar week preceding the date when the consumer was first provided with a bill.

Source: <http://webserver.rilegislature.gov/Statutes/TITLE6/6-26/6-26-11.htm>

jurisdiction: Rhode Island

statute_citation: R.I. Gen. Laws Sec. 6-26-11

title: Rhode Island — Medical Debt Interest Caps and Collection Restrictions by State


body:
**jurisdiction:** Virginia

**interest_rate_cap:** three percent of the amount of such medical debt per annum

**wage_garnishment_restriction:** Garnishing the wages of any individual qualifying for financial assistance under the financial assistance policy applicable to the underlying medical debt

**property_lien_restriction:** 3. Foreclosing on an individual's real property; 4. Placing a lien on an individual's personal property

**collection_delay_or_suit_restriction:** No medical creditor or medical debt collector shall take any extraordinary collection action until 120 days following the due date applicable to the final invoice for a health care service

**statute_citation:** Va. Code Sec. 59.1-612

> § 59.1-612. Billing and collection rules; limits on creditors. A. No large health care facility or medical debt buyer shall charge a patient any interest or late fees on medical debt until 90 days following the due date applicable to the final invoice, and no such interest or late fees shall exceed three percent of the amount of such medical debt per annum. B. No medical creditor or medical debt collector shall use any of the following extraordinary collection actions to collect medical debts: 1. Causing an individual's arrest; 2. Causing an individual to be subject to a writ of body attachment; 3. Foreclosing on an individual's real property; 4. Placing a lien on an individual's personal property; or 5. Garnishing the wages of any individual qualifying for financial assistance under the financial assistance policy applicable to the underlying medical debt. C. No medical creditor shall sell an individual's medical debt to a medical debt buyer except if, prior to such sale, the medical creditor has entered into a legally binding written agreement with the medical debt buyer under which all of the following apply: 1. The medical debt buyer is prohibited from engaging in any extraordinary collection action described in subsection B to obtain payment; 2. The medical debt buyer is prohibited from charging interest on the debt at a rate higher than three percent per annum; 3. The debt is returnable to or recallable by the medical creditor upon a determination by the medical debt buyer that the individual is eligible for financial assistance under the financial assistance policy applicable to the underlying medical debt; and 4. The medical debt buyer is required to adhere to specified procedures that ensure that the individual does not pay, and has no obligation to pay, the medical debt buyer more than such individual is responsible for paying in compliance with this chapter. D. A medical creditor that sells medical debt to a medical debt buyer under an agreement described in subsection C remains liable for any actions taken by such medical debt buyer in relation to such medical debt, subject to any indemnification provisions as may be agreed to by such parties. E. No medical creditor or medical debt collector shall take any extraordinary collection action until 120 days following the due date applicable to the final invoice for a health care service. At least 30 days before taking any extraordinary collection action, a medical creditor or medical debt collector shall provide the patient a notice including: 1. If the medical debt resulted from health care services provided by a large health care facility, a statement of whether financial assistance is available for eligible individuals and a plain language summary of any financial assistance policy; 2. A list of any extraordinary collection actions that will be taken to obtain payment; and 3. A deadline after which such extraordinary collection actions will be initiated, which shall be at least 30 days after the date such notice is provided.

Source: <https://law.lis.virginia.gov/vacode/59.1-612/>

jurisdiction: Virginia

title: Virginia — Medical Debt Interest Caps and Collection Restrictions by State


body:
**jurisdiction:** Washington

**collection_delay_or_suit_restriction:** until at least one hundred twenty days after the initial billing statement for that medical debt has been transmitted to the patient or other responsible party

**statute_citation:** RCW 70.54.470

> RCW 70.54.470 Medical debt—Limits on sale or assignment. (1) No health care provider or health care facility may sell or assign medical debt to any person licensed under chapter 19.16 RCW until at least one hundred twenty days after the initial billing statement for that medical debt has been transmitted to the patient or other responsible party.

Source: <https://app.leg.wa.gov/rcw/default.aspx?cite=70.54.470>

jurisdiction: Washington

title: Washington — Medical Debt Interest Caps and Collection Restrictions by State