Can I get medical debt lowered or forgiven?

As if the medical emergency wasn’t bad enough, now you’re looking at an invoice that you don’t know how you’ll pay. Medical debt can come on quickly and in large amounts—like, really large amounts. Health emergencies are often unplanned. Many of us are not financially prepared for them. 

If you get a big medical bill, the first thing to know is that you may not have to pay the full amount. Let's explore the steps you could take to reduce your healthcare bill and handle medical debt. These include applying for medical bill forgiveness and medical debt forgiveness programs.

What is medical debt? 

Medical debt is the money you owe to a healthcare provider (or a collection agency) for a medical service or product. A $20 copay could technically be considered a medical debt, but we’re talking about the medical debts that are overwhelming, hard to pay off, and bring on high levels of stress.

Medical debt affects millions of people. It is the most common type of collection account found on credit reports. So know that you’re not alone—and that you’ve got help.

Medical debt forgiveness through your insurance provider

Insurance providers are unlikely to directly forgive medical debt. But there could be ways to get them to pay more toward your treatment. 

Rather than medical debt forgiveness through insurance, this section covers ways to get the insurer to cover as much as possible. The insurer's role is to pay for covered medical services outside of any copays, deductibles, and coinsurance that come out of your pocket. Any time a claim is denied or rejected, you can appeal. We'll show you how. 

What to do if your insurer won’t pay

If your insurer says it won't cover your costs, there are steps you can take. Start by understanding why your claim was rejected or denied. Legally, your insurer has to tell you why it won't pay and how you can challenge the decision. 

What to do if your claim was rejected

A rejected claim is different from a denied claim. It hasn't been evaluated yet. The good news is that a rejected claim is often relatively easy to fix. Find out what the problem is, correct any errors, and resubmit the claim. 

An insurer will usually reject a claim because there's missing or inaccurate information. Maybe a couple of numbers got transposed, or your name was misspelled. 

What to do if your claim was denied

If the insurance company denies your claim, it means it isn't going to pay. You have the right to challenge the decision. 

First, check the letter you received to find out why the insurer denied your claim and how you can appeal. If you didn't get the information, call the insurer to ask for it. 

There are hundreds of reasons an insurance claim might be denied. Your appeal needs to address your specific situation. For example, let's say the insurer says the treatment wasn’t considered medically necessary. You might submit documentation from your health provider and other information to support your case. 

The exact appeal process depends on the situation, company, and state. Your insurer will usually give you a set timeframe to make your case in writing. Make sure you understand—and stick to—the deadlines. 

What to do if the internal appeal fails

If the internal appeal process fails, you can file for an external review. This means an independent group of doctors will review the case. Your insurer has to abide by the external board's decision. 

External appeals are more common in these scenarios: 

• If there is disagreement about the medical judgment

• If the insurer thinks the treatment was experimental

• If the insurer believes you gave false information on your application for insurance

How to get medical bills forgiven and other ways to lower your medical debt

If you aren't able to get your insurer to pay, or you don't have insurance, there may be other ways to reduce medical bills. These include talking to your healthcare provider, checking your bill for errors, and negotiating a payment plan. Debt consolidation and debt resolution may also be options. Start as early as possible and keep records of any conversations. And don't be afraid to follow up multiple times. 

Here are some ways to advocate for medical bill forgiveness and potentially lower medical debt.

Check your medical billing statements for errors

Ask for a detailed bill so you can review it line by line. Look for double entries, charges for services you didn't receive, and incorrect billing amounts. If there are errors, ask your provider to remove them. Reach out to the hospital, doctor, or medical provider as soon as possible.

Ask for a payment plan

A payment plan could help break down your bill into more manageable chunks. Many medical debt installment plans come with no or low interest, which could save you money. Call the billing department to ask what payment plans they offer. Get any agreement in writing.

Negotiate a discount

The costs of medical services are not fixed. For example, insurance companies can often negotiate bigger discounts. Find out the insured rate for your service or procedure. Use it to ask your healthcare provider for a better price, as this could reduce what you owe.

Offer less money

If you're able to pay upfront, you may be able to reduce medical bills by 30% or more. If this is not possible, explain your financial situation and see if they might lower what you owe. For the medical provider, getting some money is better than getting no money.

Request a superbill

A superbill is an itemized, detailed list of services. You'll usually get it if you use an out-of-network provider or pay for something out of pocket. Use it to file a claim directly with your insurer and, potentially, get money back.

What is the Medical Debt Forgiveness Act?    

There is no single Medical Debt Forgiveness Act. Lawmakers have considered a couple of Medical Debt Relief Acts, which have not passed. However, medical debt is treated differently from other types of debt. There are additional laws and consumer protections in place around medical debt.

For example, the No Surprises Act protects against unexpected medical bills. Effective January 1, 2022, it limits what you pay for emergency services from a provider that you had no clue was out-of-network for your plan. You can dispute the bill if that happens. You can also dispute your bill if it’s significantly higher than the original estimate.

Here are some other rules that might work in your favor:

• Credit bureaus will wait for one year before they include unpaid medical debts on your credit report.Other kinds of delinquencies are typically reported when the first late payment is 30 days past due.

• Paid medical collection accounts will not be included on your credit report. Other kinds of collection accounts normally remain in your file for seven years, even if you pay them off.

• Medical debts under $500 won’t hurt your credit, even if they are in collections. Credit agencies will not include these medical debts in your report. There is no minimum dollar amount for reporting other kinds of collection accounts.

These rules give you a better chance of getting back on your feet financially. They help to protect your credit standing, giving you more options. That way, you can make the best financial decision for your situation. 

Medical debt in collections

When a medical bill goes to collections, it means the hospital or medical provider has transferred the debt. Its collections department or an outside collection agency will now handle your bill. They will likely reach out to you with written notices, texts, emails, and phone calls. 

You have rights in this situation. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors may not: 

• Contact you before 8 a.m. or after 9 p.m. unless you agree to it

• Contact you after you have requested in writing that they stop 

• Harass you, treat you unfairly, or lie to you

Medical debt forgiveness programs

Medical debt forgiveness programs can reduce medical bills. They are often aimed at people who are struggling financially. Even if you can't get all your medical costs forgiven, you may be able to cut the balance down. 

Start by speaking to your hospital or healthcare provider. Then look into charities, nonprofits, or government assistance. 

Hospital programs

By law, nonprofit hospitals have to provide financial assistance or charity care programs. Some for-profit hospitals also offer financial help. There may also be state-specific rules that give you extra protections. 

To get hospital bill forgiveness:

• Find out what rules apply to your hospital and state. Over 20 states have specific rules about medical debt forgiveness programs. Understanding your rights can strengthen your claim.

• Ask for a copy of the healthcare provider's financial assistance program. It will tell you who is eligible, how to apply, and the timeframe for your application.

• Fill in an application form. This will probably include questions about your income and expenses. The hospital may ask for proof of address and other documents to support your case.

• If your debt is in collections, tell the debt collector. You can ask them to stop harassing you while the hospital processes your application.

State medical programs

Each state has its own laws covering financial assistance. Some states have medical debt forgiveness programs. Others have rules about what programs hospitals must offer. For example, in 2024 and 2025, Connecticut provided medical debt relief to over 100,000 low-income households. 

To get state-specific medical debt assistance:

• Find state-specific programs online. Search for “financial assistance for medical debt in [your state or county]”. The best resources will have a .gov address.

• Check to see if your state offers a Consumer Assistance Program (CAP). If there is a CAP in your state, reach out for support in accessing assistance.

• Visit your state attorney general or department of human services website. Look for information about financial assistance, health care fraud, and local advocacy groups. 

Depending on your state, income, and circumstances, you might have the right to:

• Financial assistance, funded at the state level

• Free or discounted care 

• Payment plans 

• Community health centers

Charities and nonprofit organizations

Several charities and nonprofits offer financial support for medical care. For example, the HealthWell Foundation provides grants for prescriptions and specific treatments. This type of charity medical bill help could be another way to reduce your healthcare bill.

To get charity medical bill help, search for nonprofits, foundations, local businesses, and community organizations in your area. Find out what services they offer and how you qualify. There are often income limits and geographical restrictions on charity medical debt forgiveness. Some charities are set up to help people with specific conditions, such as cancer or childhood diseases. 

Here are some charities to consider:

• HealthWell Foundation. As we mentioned above, this organization operates throughout the U.S. It helps people reduce their medical costs.

• PAN Foundation (Patient Access Network). This is an advocacy, patient education, and aid foundation. It provides financial assistance toward treatment costs.

• RxHope (also known as Prescription Hope). Helps people afford medications and prescriptions.

• Patient Advocate Foundation. This nonprofit gives financial aid to Americans with chronic and debilitating illnesses.

• Leukemia & Lymphoma Society. Dedicated blood cancer organization that provides support and financial aid. 

• CancerCare. This NGO offers some financial support for expenses like transport and child care. The CancerCare Co-Payment Assistance Foundation can also assist with copays for certain types of cancer.

Government programs

As a rule, the government doesn’t offer free funds to people struggling with medical bills. However, special programs crop up now and then. For example, during the COVID-19 pandemic, the Department of Veteran Affairs (VA) refunded or canceled about $1 billion in copayments for veterans in need. 

Beyond special-case initiatives, there is no federal medical debt forgiveness program. Even so, there are government assistance programs that could reduce your medical bills. Organizations to check with include:

• Children's Health Insurance Program (CHIP), for children in families that earn too much to qualify for Medicaid but not enough to afford private health insurance

• Healthcare.gov or the health insurance marketplace for your state, to see if you qualify for low cost health insurance

• Medicaid (for people with limited financial resources)

• Medicare (for people over 65, or under 65 with certain conditions)

Resolve your medical debt with a debt relief program

If your debt has become overwhelming, you might be able to get back on track through debt relief or debt resolution. Debt relief is a way to settle various unsecured debts—including medical debts—without paying the full amount. 

Medical debt settlement works by negotiating with creditors to resolve your debt for a reduced amount. The remainder of your medical debt would be forgiven. You can resolve medical debt yourself or work with a professional debt relief company. 

The Achieve Debt Relief program starts with a free debt evaluation to determine eligibility. Our expert team will learn about your situation and develop a personalized plan to help you break free from that suffocating medical debt.

Here’s how debt resolution works if you choose to enroll:

• You make a single monthly payment into a dedicated program account that is used to save funds for settlements.

• Achieve debt relief experts negotiate with creditors on your behalf.

• You settle your debts, one by one, for less than what you owe.

60% of Achieve members resolve their first account within three months. So it might not be long before you start seeing results, too.

Yes, you can get rid of medical debt. With the right plan, dedication, and support system, you can tackle this challenge head-on and put medical debt in the past.

Other alternatives to medical debt forgiveness programs 

While there are lots of ways to reduce what you owe, full medical debt forgiveness isn't always possible. Think about ways to manage the debt. These include debt consolidation and home equity loans. 

Debt consolidation loan

Debt consolidation could be worthwhile if you are finding it hard to keep on top of multiple medical debt payments. With a debt consolidation loan, you use the money from one loan to pay off multiple smaller debts. Debt consolidation could also lower your interest rate, especially if you used a credit card to cover your medical bill.

Bear in mind that credit reporting agencies treat medical debt differently, so turning it into regular unsecured debt could impact your credit scores. 

Debt consolidation for medical bills can make sense if: 

• It will lower the interest rate you pay. Compare the rates you pay on your medical debts with those of medical consolidation loans. If you can reduce your rate, you could save money on interest charges. 

• You want to simplify your payments. It can be a headache to keep on top of multiple medical payments, especially if you need to pay several organizations. A single payment could relieve stress and make payments easier to manage. 

• You have medical debt that's higher than $500 and older than one year. Credit bureaus don't include medical debt balances under $500 on your credit report. They'll also wait a year before including unpaid medical debt in collections. Think carefully if debt consolidation might mean you lose those protections.

A personal loan through Achieve could be a smart choice if you want to consolidate your debt. You might qualify for an interest rate savings if you use most or all of the funds to pay off creditors directly. You can set your payment date to best suit you, and you get to choose your own payment terms—two, three, four, or five years. 

Home equity loan

If the amount you owe on your mortgage is less than the value of the home, you have home equity. You may be able to use that to take out a home equity loan to pay your medical debt. This is also known as a second mortgage. 

Your home is collateral against the loan, just like with a primary mortgage. Collateral is a guarantee that protects the lender. That means there's a risk you could lose your home if you don't repay the loan. This is normal for secured loans like mortgages and car loans. 

There can be advantages to using a home equity loan for medical debt consolidation. You might be able to qualify for a lower interest rate or get better terms than with an unsecured loan. This could help you get out of debt faster and make your monthly payments more manageable. 

Achieve's home equity loans may also have a lower approval threshold than other types of loans. If you have struggled to get approved for debt consolidation loans in the past, it could still be worth considering. 

Solutions are out there for your medical debt. Start by understanding exactly what medical debt collections mean for your credit and financial situation. Find out what medical debt forgiveness options and other debt solutions you might qualify for. You got this!