Medical Bills You Can Lower or Clear: Know Your Rights

You may owe less than the bill says

A medical bill is not always the final word. Many hospitals are required to offer financial assistance, sometimes called charity care, to patients who cannot afford to pay. Depending on your income, that help can lower your bill or cover it completely.

The Consumer Financial Protection Bureau (CFPB) explains that you have real rights when it comes to medical debt. Understanding those rights is the first step to paying less, or nothing at all.

Checking your options is always free. You never have to pay a company to ask a hospital for financial assistance.

Ask the hospital about financial assistance

Nonprofit hospitals often must have a written financial assistance policy. This is a program that reduces or forgives bills for patients who qualify based on income and household size.

You can ask the hospital's billing or financial aid office for a copy of their policy and an application. It is worth asking even if a bill has already been sent to collections.

Also review the bill itself. Billing mistakes are common, and the CFPB suggests requesting an itemized statement so you can spot charges that look wrong before you pay.

Nonprofit relief that removes qualifying debt

Some organizations work to relieve medical debt directly. Undue Medical Debt, a nonprofit, buys and abolishes qualifying medical debt for people who meet its criteria. There is no cost to the people whose debt is relieved.

You do not apply the way you would for a loan. The group buys bundles of debt and clears them, then notifies people whose debt was included. It is worth knowing the program exists so you can recognize a real, free relief effort when you see one.

Be careful with for profit companies that promise to eliminate your medical debt for a fee. The CFPB and FTC warn against services that guarantee results on a set timeline.

What belongs on your credit report

Medical debt is treated differently from other kinds of debt on your credit report, and the rules have been changing. The CFPB is the best place to check the current treatment of medical bills on credit reports.

If you find medical debt listed that is inaccurate, already paid, or that you never owed, you have the right to dispute it. The CFPB provides guidance on how to do this.

Knowing these rules helps you protect your credit while you sort out what you actually owe.

Frequently asked questions

Do I have to pay a company to get medical bill relief?

No. Asking a hospital for financial assistance is free, and nonprofit relief like Undue Medical Debt costs nothing. Be cautious with any company that charges a fee and promises to wipe away your medical debt.

Can financial assistance cover my whole bill?

It can. Depending on your income and household size, a hospital's financial assistance policy may reduce your bill or forgive it entirely. Ask the billing office for their policy and application.

What if a medical bill on my credit report is wrong?

You have the right to dispute inaccurate, paid, or unknown medical debt. The CFPB explains how the rules work and how to file a dispute.

Is it too late to ask for help if my bill went to collections?

It is still worth asking. Many hospitals will consider financial assistance even after a bill has been sent to collections.