Indiana lawmakers move to limit how much wages can be garnished for medical bills

LOUISVILLE, Ky. (WDRB) -- An Indiana bill would cap how much Hoosiers' wages can be garnished if they have medical debt.

Right now, residents can have their wages garnished up to 25%. But Senate Bill 85 would cap that at 10% for some Hoosiers.

The bipartisan bill would completely protect Hoosiers earning 200% or less of the federal income poverty level — which is currently $15,650 — from having their wages garnished. For those who do not fall into that category, wage garnishment would be capped at 10% of a person's disposable earnings above the poverty level.

SB 85 would also require hospitals to offer payment plans that provide at least 24 months to pay a bill. The legislation would cap the amount a monthly payment can be at 10% of a person's gross monthly household income. Under the bill, the first payment would not be due before 30 days have passed from the latest date of service.

The bill would also protect homeowners against a lien being placed on their home over medical debt.

The bill passed the Indiana Senate on Thursday and is now headed to the House for a vote.

If it passes the House, it will go to Gov. Mike Braun's desk for his signature to become law.

To read or track the bill, click here.

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Indiana lawmakers move to limit how much wages can be garnished for medical bills