Katherine Wallat, Legal Director at CCLP, provided testimony against House Bill 26-1327, which aimed to address the problem of large corporations relying on the state to provide health insurance by paying their workers low enough wages to enroll in Medicaid. CCLP agrees corporations should pay their fair share, but ultimately opposed the bill because of the harm it could cause workers perceived to use Medicaid due to their age, disability, or income level.
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CCLP challenges misinformation in medical debt debate

On Tuesday, March 31, 2026, Annie Martínez, Litigation Director at CCLP, testified in support of House Bill 26-1267, Limitations on Collection Actions for Medical Debt, by dispelling misinformation about medical debt. This bill would have increased medical debt protections for Coloradans. Unfortunately, the bill was postponed indefinitely in the House Health & Human Services Committee.
Good afternoon, committee members. My name is Annie Martínez. I am an attorney with a doctorate in public policy and administration, and I am here on behalf of the Colorado Center on Law and Policy, a statewide anti-poverty organization, in strong support of HB26-1267.
I want to address a few of the arguments you are likely to hear from the opposition.
First, you will hear that tools like wage garnishment are used only in the most extreme cases. But somehow, you will also hear that without those same tools, providers will not be able to survive. Which is it? They cannot be both rare and essential.
You will also hear scare stories that wealthy people will come to Colorado, get care, refuse to pay, and walk away untouched. That is simply not true.
This bill is carefully tailored. If someone wealthy—say, Elon Musk—chooses not to pay a medical bill, creditors can still get a judgment. And if that person has multiple properties, extra vehicles, or more than $5,000 in a bank account, collection options still exist.
What this bill does is protect working people from the harshest and most destabilizing collection tactics over medical debt.
The most quote unquote extreme measure in our bill is no wage garnishments for medical debt, something the woke left state of Texas has enshrined in their constitution for almost all debt, not just medical. So, let’s be clear: banning wage garnishment for medical debt is not a radical idea. In addition to Texas, Arizona, California, Florida, North Carolina, Pennsylvania, and South Carolina have also protected wages from garnishment for most debts. The principle is simple: working people should be able to keep what they earn.
Rather than try and set restrictions based on income which can burdensome to calculate and put the load on creditors to determine that, the bill has been amended after rigorous stakeholding to protect the average working class Coloradan, someone who might own their home, their car to go to work and have a modest savings account for emergencies without creating an unworkable process for creditors.
The reality is that these extraordinary collection actions are predatory. They trap people who are already struggling and strip them of any real bargaining power. This bill helps restore that balance and creates more opportunities for realistic payment plans.
And no, this bill does not solve the cost of health care. It is not meant to. But Coloradans should not have to wait for the entire health care system to be fixed before we stop taking their wages, their property, and their stability over medical debt.
