INDIANAPOLIS—Senate Bill (SB) 85, authored by State Sens. Ed Charbonneau (R-Valparaiso) and Fady Qaddoura (D-Indianapolis), passed the Indiana Senate on third reading. Sen. Qaddoura released the following statement after the vote:
“Medical debt should not be a life sentence that follows individuals and families in every aspect of their lives,” Qaddoura said. “As the affordability crisis continues to grow, Hoosiers are feeling the strain in their pocketbooks.”
Under current law, courts may garnish up to 25% of a patient’s wages to repay medical debt. SB 85 would provide significant relief to Hoosier families by:
- Protecting patients earning up to 200% of the federal poverty level from wage garnishment
- Capping wage garnishment at 10% of income for those earning above 200% of the federal poverty level
- Prohibiting liens on a patient’s primary residence
- Requiring hospitals to offer payment plans of at least 24 months
- Requiring financial screening for charity care for families earning up to 400% of the federal poverty level
- Applying these protections to medically necessary procedures
“Hoosiers do not choose to be sick,” Qaddoura said. “No one chooses to face cancer, ALS, cardiovascular disease, or other serious medical conditions.”
Qaddoura expressed gratitude for the bipartisan support the bill received in committee and on the Senate floor.
“I want to thank Sen. Charbonneau for his collaboration on this important initiative,” Qaddoura said. “I also appreciate the community advocates, patients, Leukemia and Lymphoma Society, and Indiana Community Action Poverty Institute who resiliently advocated for this policy the past two years. I look forward to continuing to work with my colleagues to move this legislation through the House of Representatives and to the Governor’s desk to enact medical debt protections for more than one million Hoosiers.”
