---
title: "Will Medical Debt Hurt Your Credit Score? Here's What to Do"
slug: "250813-medical-debt-credit-score"
date: "2025-08-13"
author: "[Henry Wu](https://www.linkedin.com/in/henrycwu) | Contributing Policy Analyst"
description: "The latest on medical debt reporting and how to protect yourself from expensive bills."
tags: ["medical-debt", "credit-score", "billing", "patient-rights"]
readTime: "5 min read"
---

Last month, [a federal court struck down a rule](https://apnews.com/article/cfpb-medical-debt-credit-reports-41f212ee6b89f9902deb267d75ab8443) that, if implemented, would have removed medical debt from credit reports. The rule was expected to boost credit scores for millions of Americans by erasing $49 billion in reported medical debt, which impacts one in five individuals.

But even without the federal rule, some protections remain in place. The [three main credit reporting agencies](https://library.nclc.org/article/latest-keeping-medical-debt-out-credit-reports) do not report medical debts that were paid, exclude debts under $500, and give people one year before unpaid medical bills appear on credit reports.

[Fifteen states have also implemented their own protections](https://library.nclc.org/article/latest-keeping-medical-debt-out-credit-reports). States that already have medical debt credit reporting limits include California, Colorado, Connecticut, New York, Virginia, Illinois, Minnesota, New Jersey, Maine, Rhode Island, Vermont, and Washington. By the end of 2025, new protections will take effect in Maryland, Delaware, and Oregon.

## The Impact of Medical Debt

[More than half of adults in the U.S. have had medical or dental debt](https://www.npr.org/sections/health-shots/2022/06/16/1104679219/medical-bills-debt-investigation) in the past five years, and individuals in poor health are among the least likely to dispute bills. This debt can lead people to delay or skip care, cut back on necessities like food or clothing, drain their life savings, and impact their ability to get a loan or a mortgage.

The frustrating truth is that [half of all medical bills contain at least one billing error](https://www.consumerreports.org/money/medical-billing/how-to-lower-your-medical-bills-a3379293456/) but when people challenge them, many get corrections or reductions.

## What to Do About Expensive Medical Bills

If you're facing a medical bill you can't afford, or one that seems wrong, you have options.

**Verify and understand your bill:** Review your Explanation of Benefits (EOB), make sure charges match the care you got, and ask for an itemized bill. If you have insurance, send your insurer both the EOB and the bill you received.

**Know your rights:** You may be protected from surprise out-of-network charges and other billing issues. For help, consider calling the [CMS No Surprises Help Desk](tel:1-800-985-3059) at 1-800-985-3059, the [Consumer Finance Protection Bureau](tel:1-855-411-2372) at 1-855-411-2372, or the [Patient Advocate Foundation](tel:1-800-532-5274) at 1-800-532-5274.

**Dispute or negotiate:** Challenge billing errors, ask for a lower price, or request a payment plan.

**Seek financial assistance:** Ask about charity care, state programs, or nonprofit aid.

**Manage debt carefully:** Avoid high-interest credit cards and explore state or nonprofit medical debt forgiveness programs.

## References

- Associated Press. "Court strikes down rule that would have removed medical debt from credit reports." AP News, July 2025. [https://apnews.com/article/cfpb-medical-debt-credit-reports-41f212ee6b89f9902deb267d75ab8443](https://apnews.com/article/cfpb-medical-debt-credit-reports-41f212ee6b89f9902deb267d75ab8443)
- Consumer Reports. "How to Lower Your Medical Bills." Consumer Reports Money, 2023. [https://www.consumerreports.org/money/medical-billing/how-to-lower-your-medical-bills-a3379293456/](https://www.consumerreports.org/money/medical-billing/how-to-lower-your-medical-bills-a3379293456/)
- National Consumer Law Center. "The Latest on Keeping Medical Debt Out of Credit Reports." NCLC Library. [https://library.nclc.org/article/latest-keeping-medical-debt-out-credit-reports](https://library.nclc.org/article/latest-keeping-medical-debt-out-credit-reports)
- NPR. "Medical Bills Can Shatter Lives. Here's How Some People Are Fighting Back." NPR Health Shots, June 2022. [https://www.npr.org/sections/health-shots/2022/06/16/1104679219/medical-bills-debt-investigation](https://www.npr.org/sections/health-shots/2022/06/16/1104679219/medical-bills-debt-investigation)

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