In a significant step toward financial relief for many, Indiana's Senate has passed Senate Bill 85, aimed at providing much-needed support for individuals burdened by medical debt. The bill, forged by the bipartisan efforts of State Sens. Ed Charbonneau (R-Valparaiso) and Fady Qaddoura (D-Indianapolis), confronts the ever-growing affordability crisis squeezing Hoosier wallets.
As the measure cruised through the Senate floor, Sen. Qaddoura emphasized that health misfortunes should not be a perpetual financial shackle, dragging down those who are most vulnerable. According to a statement obtained by the Indiana Senate Democrats, “Medical debt should not be a life sentence that follows individuals and families in every aspect of their lives,” Qaddoura said. Facing diseases such as cancer or ALS, Hoosiers face enough challenges without the added weight of financial ruin, Qaddoura explained.
The proposed legislation seeks to make significant changes to how medical debt is handled in Indiana. Currently, courts can take up to a quarter of a patient's income, but under SB 85, those earnings up to 200% of the federal poverty level could breathe easier with protection from wage garnishment. Even individuals earning above that threshold would see garnishments capped at a more manageable 10%. Furthermore, SB 85 ensures that medical debt cannot lead to liens against a patient's primary residence and mandates that hospitals offer payment plans of at least 24 months.
Senator Qaddoura also recognized the efforts of those who pushed for the policy, highlighting the crucial support from community advocates and organizations like the Leukemia and Lymphoma Society, and the Indiana Community Action Poverty Institute, standing strongly beside the bill over the two years it coalesced into a viable piece of legislation. “I want to thank Sen. Charbonneau for his collaboration on this important initiative,” Qaddoura said. With the bill now headed to the House of Representatives, more than one million Hoosiers could soon see these protections enacted into law, offering a life raft in an ocean of medical expenses.
