State Medical Bill Rights & Protections
Know your rights when dealing with medical bills. Each state has different protections for surprise billing, debt collection limits, financial assistance requirements, and consumer safeguards. Federal laws provide baseline protections, but many states offer additional safeguards.
Federal Protections (All States)
✓ No Surprises Act
Protects against balance billing for emergency care and certain services
✓ Credit Reporting Rules
Medical debt under $500 cannot be reported; 365-day waiting period for larger debts
✓ Hospital Charity Care
Nonprofit hospitals must offer financial assistance and screen patients
✓ Price Transparency
Hospitals must publish price lists and provide good faith estimates
State-Specific Protections
Texas
Unlimited home + wage protection
Unlimited homestead exemption: your home can never be seized for medical debt
No wage garnishment for medical debt (one of only ~4 states)
No Surprises Act protections + strong state surprise billing law
365-day credit reporting protection, charity care at nonprofit hospitals
California
Most comprehensive protections
Comprehensive surprise billing protections
Aggressive debt collection restrictions
Hospital transparency requirements
Enhanced charity care mandates
Florida
Unlimited home protection + short SOL
Unlimited homestead exemption: your home can never be seized for medical debt
Head of household wages 100% exempt from garnishment
SB 1264 surprise billing ban + 120-day collection shield (HB 7089)
3-year statute of limitations on medical debt (reduced from 5)
New York
Strongest protections in the US
Medical debt banned from credit reports (Fair Medical Debt Reporting Act)
Free care under 200% FPL with standardized application
Hospitals cannot sue patients under 400% FPL, no wage garnishment
Pioneer surprise billing law since 2015, no waiver allowed
New Jersey
Strongest mandatory charity care in US
Mandatory charity care at ALL hospitals (only state), free care under 200% FPL
Medical debt banned from credit reports (Louisa Carman Act, effective July 2025)
Wages protected up to 600% FPL (~$96K individual), illegally reported debt becomes void
Surprise billing law since 2018 with baseball-style binding arbitration
Illinois
Broadest charity care eligibility (600% FPL)
Free care under 200% FPL, discounts up to 600% FPL (~$192K family of 4)
Medical debt banned from credit reports (effective January 2025)
SNAP/WIC/TANF enrollment = automatic charity care (no application needed)
$1.1 billion in medical debt erased through state relief program
Ohio
Unique HCAP state-funded program
HCAP: state-funded free care at 100% FPL at ALL hospitals (not just nonprofits)
No hospital lien law (one of only 9 states), ground ambulance surprise billing protection
$182,625 homestead exemption (effective April 2025)
Price transparency law bans hospitals from using patient data for targeted advertising
Pennsylvania
Strongest wage garnishment protection
Near-total ban on wage garnishment for medical debt (one of only ~4 states)
Insurance denial external review overturns 53% of cases in patient favor
4-year statute of limitations on medical debt (shorter than most states)
Married couples joint property protected from individual medical debt
Georgia
Weak protections, know your limited rights
One of the weakest protection states: 25% wage garnishment, $23K homestead exemption
Pathways Medicaid only covers ~5,000 of 400,000+ eligible, 14% uninsured rate
Surprise Billing Consumer Protection Act (Jan 2021), 6-year statute of limitations
Rural hospital crisis: 9+ closures since 2010, 18 of 30 remaining at risk
North Carolina
$6.5B debt relief + no wage garnishment
$6.5 billion medical debt relief program, largest in US history, 2.5M residents covered
No wage garnishment for private medical debt (one of the strongest protections)
Medicaid expansion Dec 2023 covers adults to 138% FPL, 600K+ newly eligible
Hospital credit reporting ban (July 2025), 3-year statute of limitations
Virginia
Transformative new law July 2026
Medical Debt Protection Act (July 2026): 3% interest cap, no home foreclosures
Medical debt banned from credit reports (July 2024)
Medicaid expansion since 2019, covers adults to 138% FPL
3-year statute of limitations (reduced from 5 years in 2024), $50K homestead exemption
Michigan
Strong Medicaid + pending debt protections
Healthy Michigan Plan (Medicaid expansion since 2014), ~750,000 enrolled at 138% FPL
Expanded homestead exemption ($125K/$200K as of late 2024)
Massive hospital consolidation: Corewell Health (22 hospitals), Ascension exit
Pending Medical Debt Protection Act (SB 701/702): 3% interest cap, home lien ban
Arizona
Prop 209 interest + garnishment caps
Prop 209: medical debt interest capped at 3%, wage garnishment limited to 10% of income
$437,600 homestead exemption protects your home from medical debt collectors
Free surprise billing arbitration through SOONBDR program (since 2017)
$5,000 bank account shield, medical debt cannot force bankruptcy asset seizure
Tennessee
175% cost cap for uninsured patients
Uninsured hospital bills capped at 175% of cost (TCA 68-11-262), saving 60-80% off charges
Medical debt banned from credit reports (effective 2024)
TennCare covers adults to 138% FPL, 1.7M+ enrolled
6-year statute of limitations, hospital liens limited to 75% of net recovery
Colorado
Credit ban + 3% interest cap + $250K home protection
Medical debt banned from credit reports (HB23-1126)
3% interest cap on medical debt (SB23-093), hospital discounted care at Medicare rates under 250% FPL
$250,000 homestead exemption, surprise billing protections since 2020
Colorado Option: state-regulated insurance plans capping premiums
Maryland
Only state with government-set hospital prices
ONLY state where government sets ALL hospital prices (HSCRC all-payer rate system)
Medical debt banned from credit reports, free hospital care under 200% FPL
Home liens banned for medical debt, debts under $500 cannot be collected
HSCRC complaint process lets you challenge any hospital bill directly
Massachusetts
$1M homestead + Health Safety Net to 300% FPL
Health Safety Net: free or low-cost care up to 300% FPL at all acute hospitals
$1,000,000 homestead exemption (highest in nation for medical debt protection)
Near-universal insurance coverage (~97%), MassHealth + ConnectorCare subsidies
Strong surprise billing law, 6-year statute of limitations
Washington
Strongest charity care enforcement in the US
Free hospital care under 300% FPL at large hospitals (strongest charity care law in US)
Medical debt banned from credit reports, mandatory financial assistance screening
$205M+ in AG enforcement actions against hospitals violating charity care laws
Balance Billing Protection Act (2019), Apple Health covers adults to 138% FPL
Oregon
Strong charity care + Providence accountability
Free nonprofit hospital care under 200% FPL, 75% discount up to 300% FPL (ORS 442.614)
Medical debt banned from credit reports (SB 605, effective January 2026)
Mandatory financial assistance screening before any collection (HB 3320)
Providence HQ state with ongoing DOJ investigation, CCO coordinated care model
Minnesota
Debt Fairness Act + zero interest on medical debt
Debt Fairness Act (2024): medical debt banned from credit reports, zero interest on medical debt
Charity care screening required before any collection action (MN 144.587)
Income-based wage garnishment caps (10-25%), $510,000 homestead exemption
MinnesotaCare public option to 200% FPL, Mayo Clinic free care under 200% FPL
Indiana
New SB 225/SB 85 garnishment and transparency protections
SB 225 (2026): hospitals cannot collect debt if they violated pricing transparency laws
SB 85: payment plans required, wage garnishment eliminated under 200% FPL, capped at 10% above
Primary residence liens prohibited for medical debt
HIP 2.0 (Healthy Indiana Plan) covers adults up to 138% FPL with POWER Accounts
Missouri
10-year SOL warning + surprise billing law
10-year statute of limitations on medical debt (one of the longest in the US)
RSMo 376.690 surprise billing protections for emergency and certain OON care
Medicaid expanded 2021 (Amendment 2), covers adults up to 138% FPL
HB 1024 expanded hospital price transparency requirements
Wisconsin
BadgerCare Plus + 20% garnishment cap
BadgerCare Plus covers adults up to 100% FPL (unique non-expansion approach)
20% wage garnishment cap (lower than federal 25% max)
$75,000 homestead exemption, 6-year statute of limitations
Milwaukee County medical debt abolition program (first in state)
South Carolina
3-year SOL advantage + pending credit report ban
3-year statute of limitations on medical debt (one of the shortest, favorable for patients)
No Medicaid expansion: coverage gap affects thousands of adults
Bill 4149 pending: would ban medical debt from credit reports
$63,250 homestead exemption, certificate-of-need community benefit requirements
Kentucky
$5,000 homestead warning + Medicaid expansion
$5,000 homestead exemption (one of the lowest in the US, critical warning)
Medicaid expanded, kynect state marketplace, 5-year SOL on medical debt
HB 288: limits interest rates on medical debt
Louisville hospital lawsuit scandal: patients sued who qualified for charity care
Alabama
Weakest protections, coverage gap crisis
No Medicaid expansion: parents must earn under ~18% FPL, childless adults excluded entirely
160,000 residents in the coverage gap with no affordable options
6-year statute of limitations, $16,450 homestead exemption
No state charity care law (only federal 501(r) protections apply)
Louisiana
Unlimited homestead + 3-year prescriptive period
Unlimited homestead exemption: your home can never be seized for medical debt
3-year prescriptive period on medical debt (civil law system, very short)
Medicaid expanded 2016, covering 700,000+ previously uninsured adults
Historic charity hospital system (1736 to 2015 privatization)
Connecticut
Credit report ban + first state debt relief program
Medical debt banned from credit reports entirely (Public Act 24-6, July 2024)
First state to abolish medical debt for 120,000+ residents through state-funded relief
$250,000 homestead exemption, 6-year statute of limitations
HUSKY Health (Medicaid) covers adults up to 138% FPL, children up to 323% FPL
Nevada
No home liens + indigent patient shield
No liens or foreclosures on homes for medical debt (full prohibition)
Indigent patients (under 200% FPL) exempt from all collection actions
Hospital debt voided if hospital fails to provide itemized statements
Hospital Price Finder tool (AB 343) for comparing prices statewide
Oklahoma
Price transparency = complete defense to debt
HB 4148 (2024): hospitals cannot obtain judgment if non-compliant with price transparency laws
Unlimited homestead exemption (constitutional, no dollar cap on home value)
Judgments expire after 5 years if creditor fails to renew (many miss this deadline)
All retirement accounts 100% exempt, hospital liens only for personal injury cases
Mississippi
No hospital liens + balance billing ban since 2013
No general hospital lien law (repealed 1989, extremely rare nationally)
Balance billing illegal since 2013, predating federal No Surprises Act by a decade
Age 70+ wild card exemption: $50,000 per person in ANY asset type
30-day full wage protection after garnishment writ served, 3-year SOL
Iowa
Effectively judgment-proof (unlimited home + low garnishment)
Unlimited value homestead exemption (no dollar cap, home untouchable for medical debt)
Annual wage garnishment caps so low that collection is impractical ($800/year at $20K income)
20-day right to cure notice required before any collection action (Section 537.5111)
Retirement accounts fully protected, hospital liens only for tort recoveries
Utah
All hospitals must offer charity care (incl for-profit)
ALL hospitals (including for-profit) must offer charity care (Utah Code 26B-2-224, rare nationally)
0% interest payment plans required before referring to collections (HB 228)
45-day notice required before credit reporting, pre-collection screening mandatory
Ground ambulance balance billing prohibited (HB 301, 2025)
New Mexico
Self-attestation stops all collection + Medicare rate cap
Self-attestation of indigency (verbal, no documents) stops ALL collection immediately
Hospitals must charge uninsured patients no more than Medicare rates
Wage garnishment completely banned for patients under 200% FPL
2025 court rule: indigency form now required with every medical debt lawsuit
Arkansas
2-year SOL (shortest in the country)
2-YEAR statute of limitations on medical debt (shortest in the entire country)
Unlimited-value rural homestead (80 acres, no dollar cap)
Tenancy by entirety (default for married): jointly-held property untouchable if one spouse owes
Hospital liens expire after 180 days, only apply to tort settlements
Kansas
Illness shields wages + 20% income collection cap
Illness garnishment shield: if sickness caused missed work, wages cannot be garnished
20% annual income cap on hospital collections for uninsured charity-care-eligible patients
Unlimited value homestead exemption (constitutional, no dollar cap)
KCPA provides $10,000+ statutory damages per violation against abusive collectors
West Virginia
Enhanced homestead for catastrophic medical + no hospital liens
Enhanced homestead exemption for catastrophic medical debt ($12,500 vs $5,000 for other debts)
No hospital lien statute (one of only ~3 states)
WVCCPA covers hospitals directly (not just collectors), $1,000/violation + attorney fees
Undue hardship petition can reduce or eliminate garnishment at any time
Nebraska
State debt forgiveness program + low judgment interest
Medical Debt Relief Act (LB1158, 2024): state purchases and forgives medical debt for low-income residents
$120,000 homestead exemption protects home equity from judgments
Head of family garnishment drops to 15% (vs 25% standard)
Ultra-low judgment interest rate (~2.2%), one of the lowest in the nation
Hawaii
Only employer health insurance mandate + lowest uninsured rate
Prepaid Health Care Act: only state requiring ALL employers to insure employees working 20+ hours/week
Graduated garnishment formula (5%/10%/20%) far below federal 25% cap
~97% insured rate (highest in the nation), reducing medical debt formation
SB1040 medical debt forgiveness program (effective July 2026) for households under 400% FPL
Idaho
Patient Act: strongest billing procedure protections in the country
Idaho Patient Act: strict billing timelines (45/60/90 day rules), non-compliance = $1,000-$3,000 penalties
Attorney fee caps ($350 uncontested, $750 contested) make small-debt lawsuits irrational
$175,000 homestead exemption, Medicaid expanded via Proposition 2
Supreme Court upheld Patient Act constitutionality (Jan 2026)
Maine
No garnishment + no liens + no credit reporting + dead debt stays dead
LD 2129 (2026): bans wage garnishment AND home liens for medical debt
LD 558 (2025): complete ban on medical debt in credit reports
Dead debt stays dead: payments on time-barred debt do NOT restart the clock (nearly unique)
No interest on medical debt, free care mandatory at 200% FPL
Delaware
Medical Debt Protection Act: among strongest in the nation
Medical Debt Protection Act (2024): no wage garnishment, no bank attachment, no interest on medical debt
Credit reporting ban (Oct 2025): total ban on medical debt in credit reports
Mandatory 24-month payment plans capped at 5% of gross monthly income
Treble damages for violations against patients 65+ or disabled
Rhode Island
2026 trifecta + $500K homestead, but 10-year SOL warning
S0169 trifecta (Jan 2026): bans credit reporting, wage garnishment, AND home execution for medical debt
$500,000 automatic homestead exemption (among highest in the nation)
Mandatory 100% charity care at 0-200% FPL, sliding scale 200-300% FPL
WARNING: 10-year statute of limitations (one of the longest)
Montana
HB273 voids debt for violations + $409K homestead
HB273 (Oct 2025): bans liens, garnishment, and credit reporting for medical debt; $3K bank exemption
Homestead exemption ~$409K (2025, increases 4% annually), among highest in the nation
Consumer Protection Act covers hospitals directly with treble (3x) damages
Debt VOIDED entirely for willful HB273 violations
New Hampshire
Unlimited homestead for catastrophic medical debt + no garnishment
Homestead: $400K individual, $550K couples, UNLIMITED for catastrophic/terminal medical debt
Effectively no wage garnishment (trustee process makes it impractical)
3-year statute of limitations (RSA 508:4) is very patient-friendly
RSA 358-C violations trigger treble damages under Consumer Protection Act
South Dakota
Unlimited homestead, but weak overall protections
UNLIMITED homestead exemption (one of only 5 states with no dollar cap)
6-year statute of limitations on medical debt (SDCL 15-2-13)
No state income tax (no tax refund garnishment risk)
WARNING: No state charity care law, 10% judgment interest, Medicaid expansion under threat
North Dakota
90-day delinquency rule + copay accumulator ban
90-day delinquency rule: medical accounts cannot become delinquent for 90 days (NDCC 13-01-14.1)
HB 1216 copay accumulator ban (2026): manufacturer copay assistance counts toward deductible
$150,000 homestead exemption, Medicaid expanded since 2014
WARNING: 12% judgment interest rate (among highest in nation)
Alaska
3-year SOL + tribal healthcare + PFD protection
3-year statute of limitations on medical debt (AS 09.10.053)
Largest tribal health system in the U.S. (ANTHC/ANMC) provides free care to Alaska Native/AI patients
PFD (Permanent Fund Dividend) protected from medical debt garnishment (AS 43.23.140)
Generous wage exemptions: $473/week standard, $743/week sole earner
Vermont
Strongest state: credit ban + garnishment ban + free care mandate
Act 21 (2025): BANS medical debt from credit reports AND bans wage garnishment (strongest in nation)
Mandatory 100% free care under 250% FPL, sliding scale to 400% FPL, catastrophic cap to 600% FPL
$1 million debt relief fund targeting $100M+ in medical debt elimination
Hospitals cannot sue without first certifying they offered financial assistance
Wyoming
No hospital liens + price transparency, but weak overall
No hospital lien statute (hospitals cannot lien your property or injury settlements)
SF 57 price transparency: facilities must provide good-faith estimates before services
Full retirement fund protection from garnishment (Wyo. Stat. 1-20-110)
WARNING: 8-year SOL, $40K/$80K homestead, no Medicaid expansion (coverage gap for ~9,000 adults)
Washington D.C.
Unlimited homestead + 3-year SOL + zombie debt ban
UNLIMITED homestead exemption (primary residence fully protected from medical debt judgments)
3-year SOL with zombie debt ban: collectors cannot sue or threaten on time-barred debt
DC Code 28-3814 covers original creditors AND collectors (most states only cover collectors)
High garnishment floor: $718.50/week exempt (incomes under ~$37K fully protected)
What These Guides Cover
Surprise Billing
When you're protected from unexpected out-of-network bills and how to dispute them.
Financial Assistance
Hospital charity care requirements, eligibility thresholds, and application processes.
Debt Protection
Collection limits, credit reporting rules, wage garnishment protections, and complaint options.
How to Use These State Guides
When You Receive a Medical Bill:
- • Check your state guide for specific protections and rights
- • Verify if the bill qualifies for surprise billing protections
- • Review financial assistance requirements if you need help paying
- • Know your timeline limits for disputes and applications
For Debt Collection Issues:
- • Understand credit reporting protections in your state
- • Know wage garnishment limits and exemptions
- • Find state agencies to file complaints with collectors
- • Get contact information for consumer protection offices
Get Personalized Help
Don't See Your State?
We're continuously adding state-specific guides. Remember that federal protections apply everywhere, and many strategies work regardless of state:
Disclaimer: State laws change frequently and this information is for educational purposes only. Always verify current laws and regulations with official state sources or consult with a qualified attorney for specific legal guidance. CareRoute does not provide legal services.