Medical debt rules have changed significantly. Here's what you need to know.
Recent Changes to Medical Debt Reporting
2022-2023 Changes
- Paid medical collections no longer appear on credit reports
- Unpaid medical debt under $500 is excluded
- New medical debt has 1-year waiting period before reporting
FICO Score 9 and VantageScore Changes
Newer scoring models weigh medical debt less heavily than other collections.
Strategies for Medical Debt
1. Verify the Debt
Request itemized bills and verify charges are correct.
2. Check Your Insurance
Ensure insurance paid what it should. Appeal denied claims.
3. Negotiate with Providers
Many hospitals offer charity care, payment plans, or discounts for financial hardship.
4. Dispute Inaccuracies
If amounts are wrong or debt was paid, dispute with bureaus.
5. Negotiate Pay-for-Delete
Offer to pay in exchange for removal from credit reports.
Medical Debt Under New Rules
Medical collections under $500 should not appear. If they do, dispute them citing the new policies.
Hospital Financial Assistance
Most non-profit hospitals are required to offer financial assistance. Ask about:
- Charity care programs
- Sliding scale payment plans
- Discounts for prompt payment
- Hardship programs
When Medical Debt Goes to Collections
If debt is sold to collectors:
- Request debt validation
- Negotiate a settlement
- Get pay-for-delete in writing
- Pay with method that provides proof
Impact on Your Credit
Under new models, medical debt has less impact than other collections. Focus on:
- Removing inaccurate medical debt
- Paying or settling valid debt
- Building positive credit
Need Help?
Pioneer Credit Solution navigates medical debt disputes. Call 1-888-271-2293.