Understanding Medical Debt Collection
Medical debt is one of the most common—and confusing—forms of consumer debt in the U.S. Unexpected bills, insurance gaps, and delayed payments can quickly lead to accounts being sent to collections. This guide explains how medical debt collection works, your legal protections, and steps you can take to resolve it.
About 20 million Americans owe medical bills they’re struggling to pay.
Medical debt includes unpaid charges for:
- Hospital stays
- Emergency Services
- Outpatient services
- Prescriptions and lab work
- Dental, vision, and mental health services
Even small balances can end up in collections if they remain unpaid after 60–120 days.
How Medical Bills End Up in Collections
When a bill isn’t paid on time:
- It may be sent to an internal collections department
- Or sold to an outside collection agency
Medical providers often delay reporting to give patients a chance to work with insurance or payment plans—but eventually, unpaid balances may be reported.
Explore our key projects and initiatives
Your Rights Under the FDCPA
Collectors must identify themselves and the amount owed
You can request debt validation in writing…
How Medical Debt Affects Your Credit
As of 2022–2023, credit bureaus removed paid medical debt from reports and won’t report unpaid debt under $500. However, large balances still hurt your score after the 1-year grace period.
Paying, Settling, or Disputing Medical Bills
Negotiate payment plans directly with providers
Request itemized bills to check for duplicate charges…
What to Do If You’re Sued for Medical Debt
If a collector sues over unpaid medical bills:
Don’t ignore the summons
Respond before the court deadline…
Tools & Resources for Help
KFF.org: The Burden of Medical Debt
No Surprises Act – HHS
National Consumer Law Center
Medical billing advocates & nonprofit negotiators