Medical Debt and Credit Reporting: What US Consumers Should Know

Medical debt is one of the most common reasons Americans deal with debt collectors. It can also appear on credit reports, affecting credit history. Rules around medical debt and credit reporting have changed considerably in recent years — including changes by the major credit bureaus about what medical debt they include on credit reports. This page explains the general landscape.

Medical debt and how it reaches collectors

Unpaid medical bills are typically handled by the healthcare provider’s billing department initially. If unpaid for a period (often 90 to 180 days), the bill may be sent to a collection agency. The collector then attempts to collect the bill, which may result in a collection account on your credit report.

Recent changes to medical debt reporting

In recent years, the three major credit bureaus (Equifax, Experian and TransUnion) have announced significant changes to medical debt reporting, including removing certain medical collection accounts from credit reports. The CFPB has also examined the role of medical debt in credit reporting. Rules and bureau policies continue to evolve. Always check the current position at consumerfinance.gov and directly with the bureaus.

Disputing medical debt on your credit report

The dispute process for medical debt works the same way as for other credit report errors. Get your free credit report at AnnualCreditReport.com. If you see a medical collection account you believe is inaccurate — wrong amount, already paid, not yours — file a dispute with the bureau and the furnisher. The bureau must investigate within 30 days.

Hospital financial assistance and charity care

If you received care from a nonprofit hospital, you may be eligible for financial assistance (sometimes called charity care) — regardless of whether the bill has already gone to collections. Contact the hospital’s billing department and ask specifically about financial assistance programmes. Federal law requires certain nonprofit hospitals to have charity care policies.

Medical debt collectors and the FDCPA

Medical debt collectors must follow the Fair Debt Collection Practices Act (FDCPA), just like any other debt collector. You have the right to request debt validation, dispute the debt, and report violations to the CFPB.

Before paying a medical collection

Before paying any medical collection account, consider:

• Verifying the amount is correct
• Checking if it should have been covered by insurance
• Asking about financial assistance
• Checking whether the account is already scheduled to be removed from credit bureau reporting under current rules

This page is general educational information only. It is not financial, legal, tax, credit or debt advice. Rules and regulations can change. Always verify current information with official sources before taking any action.