The Ohio Medical Debt Fairness Act seeks to amend the Revised Code to enhance protections for consumers dealing with medical debt. A key feature of the bill is the establishment of a maximum interest rate of three percent per annum on medical debt incurred after the amendment's effective date. The bill defines "medical debt" specifically, excluding debts from veterinary services and general credit lines, and introduces new definitions for terms such as "health care provider" and "incur." Additionally, it modifies existing laws to ensure that the three percent interest cap applies to judgments related to medical debt, thereby providing clearer guidelines for both consumers and creditors.

The act also introduces significant changes to the garnishment of personal earnings for medical debts. It prohibits creditors from initiating garnishment proceedings if a debtor is adhering to an agreed-upon payment plan, allowing for a grace period of 120 days before creditors can seek garnishment. When garnishment is pursued, the amount deducted from a debtor's disposable earnings is capped at 10% per workweek. Furthermore, the bill repeals outdated sections of the Revised Code concerning debt collection and garnishment, aiming to create a more equitable framework that prioritizes consumer rights and responsible debt management in Ohio.

Statutes affected:
As Introduced: 1343.01, 1343.03, 2716.02, 2716.03, 4712.01