(Statehouse) – Indiana lawmakers are weighing how to balance protections for Hoosiers struggling with medical debt against the ability of hospitals and providers to collect payment.
Testimony on Monday at the Statehouse highlighted the challenges faced by the Interim Study Committee on Courts and the Judiciary.
Sam Snideman, vice president of government relations for the United Way of Central Indiana, told lawmakers the burden of unpaid bills continues to grow.
“We need coordinated solutions that address the high costs of health care and patients’ ability to pay,” Snideman urged. “While also protecting patients who do have medical debt from burdens like adverse credit events.”
Indiana ranks 11th in the nation for the number of residents with medical debt in collections. Supporters of reforms said stronger protections would help families avoid financial free fall. Critics warned limits on garnishments or liens could hurt small hospitals and ambulance services, especially in rural areas.
Erin Macey, director of the Indiana Community Action Poverty Institute, believes current wage protections leave families too vulnerable.
“This isn’t just dollars and cents. It’s human impact,” Macey emphasized. “Improving our exemption laws will help those unfortunate many who are taken to court over medical debt keep their heads above water while they’re paying off their bills.”
The committee meets again September 9 and could recommend legislation for the 2026 session.
(Story by our newsgathering partners at Indiana News Service)
