Washington, D.C. has enacted the Medical Debt Mitigation Amendment Act, which bans health care providers and debt collectors from reporting medical debt to consumer reporting agencies, effective October 1, 2026. The law also restricts wage garnishment and property liens for medical debt, though protections vary sharply by income level and property type. D.C.
is among the first U.S. jurisdictions to enact a medical debt credit reporting ban at all. The credit reporting prohibition applies to all D.C. residents regardless of income, but wage garnishment and lien protections are narrower and income-contingent. Understanding which protections apply to your situation requires knowing your household income and what assets the debt collector may target.
Table of Contents
- The Credit Reporting Ban—Protection for All Income Levels
- Wage Garnishment Protection—Income-Based Limits
- Property Lien Restrictions—Primary Residence Protected, Others Are Not
- When the Law Takes Effect and Who It Covers
- Verifying the Law Applies to Your Debt
- Frequently Asked Questions
The Credit Reporting Ban—Protection for All Income Levels
The credit reporting ban takes effect immediately on October 1, 2026 with no income threshold. All D.C. patients are protected from having medical debt reported to credit bureaus, regardless of earnings. This means a medical debt cannot damage your credit score through a collection agency report or a creditor reporting directly to Equifax, Experian, or TransUnion.
The ban covers both health care providers (hospitals, clinics, doctors' offices) and third-party debt collectors who buy or collect the debt. Existing medical debt already on your credit report does not automatically disappear on the law's effective date, but new medical debt cannot be reported to bureaus once October 1 arrives.
Wage Garnishment Protection—Income-Based Limits
Wage garnishment protection applies only to households at or below 500% of the federal poverty level; households above that threshold receive no wage garnishment protection under this law. For a family of four in 2026, the 500% threshold is approximately $65,000 annual income. If you earn more than that, D.C.
law does not prevent a creditor from garnishing your wages for medical debt. This income cutoff is the law's most significant limitation. A single person or household with higher earnings loses this protection entirely. If your income is close to the threshold, it matters whether the calculation includes one income or two, bonuses, or household size.
Property Lien Restrictions—Primary Residence Protected, Others Are Not
D.C. law prohibits property liens against a patient's primary residence for medical debt, but does not restrict liens on secondary properties or investment real estate. A debt collector cannot place a lien on the home you live in, but can place a lien on a vacation property, rental property, or investment real estate you own.
This distinction matters if you own multiple properties. A second home or investment real estate remains exposed to debt collection liens, even if your primary residence is protected. Renters are unaffected by this provision because they do not own property that could receive a lien.
When the Law Takes Effect and Who It Covers
The law takes effect October 1, 2026, which is six days after the law's enactment date of August 20, 2026. Only D.C. residents benefit from these protections; residents of Maryland, Virginia, or other states remain subject to their own debt collection and credit reporting rules. Debt collection lawsuits filed before October 1 are not automatically voided, and wage garnishments already in place do not stop automatically. If you are facing a wage garnishment or have a collection lawsuit pending, consult a local attorney before the effective date to understand your rights under the new law.
Verifying the Law Applies to Your Debt
Not all debt is medical debt under this law. The statute covers only debt incurred for health care services—hospital bills, doctor visits, lab tests, prescriptions, and related medical care. It does not cover health insurance premiums, dental work, or mental health treatment billed separately outside the health care system. Review your debt notice to confirm it is for medical services D.C.
law covers. If a creditor or debt collector violates the law after October 1, you can report them to the D.C. Attorney General's Office or respond in any pending collection lawsuit by citing the new statute. Creditors and debt collectors are required to comply immediately; noncompliance is a violation of D.C. law.
Frequently Asked Questions
Does the credit reporting ban remove medical debt already on my credit report?
No. The law prevents new medical debt from being reported to credit bureaus after October 1, 2026, but does not automatically delete existing medical debt entries. You can dispute outdated or inaccurate entries directly with the credit bureaus.
If I earn more than $65,000 annually, am I protected from wage garnishment?
No. The wage garnishment protection applies only to households at or below 500% of the federal poverty level (approximately $65,000 for a family of four). Households above that threshold have no wage garnishment protection under this law.
Can a debt collector put a lien on my vacation home?
Yes. The law prohibits liens only on your primary residence. Secondary properties, rental real estate, and investment properties can still receive medical debt liens.
Does this law apply to me if I live in Maryland or Virginia?
No. This law applies only to D.C. residents. If you live outside D.C., check your state or local laws for medical debt protections.