Minnesota Unpaid Medical Debt Lawsuits Soar In 2025

A nonprofit organization is sounding the alarm - health care providers and collection agencies are suing patients over their unpaid medical bills.

Health Care Costs Rising

Health care is expensive, and insurance premiums go up every year. Many people have also switched to high-deductible plans so they can budget the increasing monthly premiums. This can cause big gaps in medical coverage, leaving the patient more responsible for expenses.

When a patient can't pay their medical bill, the debt is turned over to collection agencies. When an agency sues, it can eventually lead to garnished wages, putting those people who are already under financial stress into a cycle of poverty, according to MPR News.

COVID-19 Lawsuit Slowdown

This isn't anything new, but health providers didn't file nearly as many lawsuits during the COVID-19 Pandemic because it was a bad look. However, in the years following the health crisis, lawsuits have been increasing, and now they are back at the pre-pandemic levels.

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There are some protections in place for low-income patients in Minnesota, like the Minnesota Debt Fairness Act. Medical debt will no longer be automatically transferred to a spouse, health care providers cannot deny medically necessary care due to unpaid bills, and medical debt can't be reported to credit reporting agencies.

Show Up To Court + Negotiate

MPR interviewed Lester Bird from Pew Charitable Trusts and asked what patients can do. In many cases, the health care providers will neogiate with you and even wave some fees if you show up to court. Read more from MPR News.