Debt Relief
Medical Debt
Medical debt summary:
Medical debt is personal debt owed to hospitals, clinics, or healthcare providers.
An estimated 3 million Americans owe medical debt of $10,000 or more.
Some overdue medical debts could show up on your credit report and hurt your credit score.
Medical debt definition and meaning
Medical debt is a type of personal debt that results from medical bills and other healthcare expenses. You might owe medical debt to a hospital, clinic, or doctor’s office—or a credit card company if you used credit cards to pay your medical bills.
Medical debt is a common form of debt; approximately 41% of U.S. adults have medical debt, and about 3 million U.S. adults owe medical debts of $10,000 or more. Understanding how medical debt works could help you get rid of debt faster.
Key concept: Debt that stems from medical bills and healthcare expenses.
More on medical debt
Healthcare in the U.S. is expensive. Americans spent an average of $1,514 per person on out-of-pocket healthcare costs in 2023. You can accrue medical debt even if you have health insurance.
Medical debt can become a serious financial hardship, especially if you or a family member have had to miss work and lose income while recovering from health problems.
Medical debt: a comprehensive breakdown
Medical debt could be less harmful to your credit score and easier to get rid of than some other types of debt. Let’s walk through a quick breakdown of what you need to know about medical debt and how to deal with it.
Many providers offer assistance
If you have a financial hardship and can’t pay your medical debt, talk to your hospital or clinic. Many healthcare organizations offer charity care for people who can’t afford their medical bills. You can ask the hospital or clinic to reduce your bill, work out a payment plan, or tell you about other forms of medical debt relief they offer.
You may qualify for low- or no-interest financing
Hospitals and clinics may offer repayment plans with low or no interest where you owe money directly to the healthcare organization. Medical debt is never fun, but if you don’t have to pay interest, a payment plan could give you more flexibility to fit your medical bills into your budget.
Medical debt could show up on your credit report
There are some limits for how soon and how much medical debt can be put on your credit report. As of 2025, overdue medical debts under $500 or less than 12 months overdue can't go on your credit report. If you fall behind on medical bills long enough, just like any other debt, medical debt over $500 could be sent to collections and show up as a negative item on your credit report.
Medical debt could be negotiated
Just like credit card debt, medical debt is unsecured debt that could be eligible for debt relief through negotiation. You can negotiate with hospitals and healthcare providers to find out if they’ll accept less money than you owe to get rid of your debt. Or you could work with a professional company that negotiates with creditors for you. Debt relief for medical debt could help you get rid of debt faster than minimum payments.
Medical debt could be discharged in bankruptcy
If your medical bills are so high that you have no reasonable way to pay them, you may consider filing for bankruptcy. If you qualify, your medical debt could be discharged through Chapter 7 bankruptcy along with other unsecured debts. About two-thirds of people who file bankruptcy say that medical bills were a leading cause of their financial troubles.
If you have medical debt, keep in mind that you’re not alone. Many people sometimes need a plan to pay off medical bills over time. You have options, including talking to your provider, negotiating with creditors, or considering bankruptcy.
Medical Debt FAQs
What happens if I ignore my medical debt?
Collection accounts over $500 that appear on your credit report will damage your credit score until they’re paid. Avoiding bill collectors can be stressful when you’d rather be concentrating on your health. The worst case is that your bills go to collection and the provider or debt collector sues you. If you've been avoiding your medical debt, you can still take control by contacting your provider and asking for help.
Can I negotiate the cost of a medical procedure in advance?
In many cases, you can. Compare the costs among different providers, and ask for estimates in writing. Some hospitals even offer online estimator tools or calculators. Medicare.gov provides nationwide average costs for procedures on its helpful Procedure Price Lookup tool. And federal law requires hospitals to post their price lists for procedures on their web sites. (You may need to get help understanding this information; it’s often complicated and full of jargon.) Use this information to negotiate lower costs upfront.
Is bankruptcy a viable option for dealing with medical debt?
Medical debt is unsecured debt, and you can usually include it in a bankruptcy. However, bankruptcy is public, it can be expensive, and you have to turn control over to a judge. It’s smart to consider other, less drastic solutions before pulling the trigger on a bankruptcy. Debt relief, for example, is designed to help people who have suffered a financial hardship to reduce their debt.
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