Change provisions relating to garnishment of wages for medical debt

LB 174 reduces the maximum amount of wages that can be garnished for medical debt from 15% to 10% of an individual's disposable earnings (after taxes and mandatory deductions). It directly affects Nebraska residents with medical debt being collected by medical debt buyers (entities that purchase and collect unpaid medical bills) and medical creditors (hospitals or providers). The bill establishes a new 10% cap for most cases, with a higher 20% limit possible only if the person is not a head of household (verified through a sworn affidavit). It also defines key terms like "medical debt," "medical debt buyer," and "head of household" to clarify eligibility for protections. This change aims to limit wage garnishment specifically for medical debt while maintaining existing rules for other debts like child support or taxes.