State Lawmakers Seek Restraints on Wage Garnishment for Medical Debt

February 21, 2026 - 03:54

A growing number of state legislatures are taking action to protect residents from having their paychecks seized over unpaid medical bills. Currently, at least eight states are actively considering bills that would place new restraints or outright bans on wage garnishment specifically for medical debt.

This legislative push comes amid rising healthcare costs and concerns that many Americans, even those with insurance, are one medical emergency away from financial ruin. Proponents argue that garnishing wages for medical debt is particularly punitive, as it often targets individuals who faced unforeseen health crises rather than voluntary consumer debt.

The proposed measures vary by state but commonly seek to prohibit hospitals, clinics, and collection agencies from seeking court orders to garnish wages for unpaid medical expenses. Advocates for the reforms stress that medical debt is a unique burden and that draining paychecks undermines financial stability and recovery, potentially forcing families deeper into hardship.

Critics, often from the collections and healthcare finance sectors, warn that such restrictions could lead to higher costs for other patients and make it harder for providers to recoup expenses for unpaid care. Despite this opposition, the bipartisan momentum in multiple states signals a significant shift toward viewing overwhelming medical bills as a systemic issue requiring policy intervention to protect workers' earnings.