What to Do If You Can’t Pay Your Healthcare Bills: 10 Solutions

Medical debt is common. In fact, 1 in every 3 U.S. adults has at least one unpaid healthcare bill. Medical bills are the nation’s largest source of collections debt — outranking the combined amount owed on credit cards, utilities, and auto loans.

If you’re having trouble paying your medical bills, we’re here to help.

What happens if you don’t pay your medical bills?

You may be contacted by a debt collector if your unpaid medical bill is so overdue that it ends up in collections. Sometimes, you will receive a final warning to pay before the debt goes to collections.

A debt collector’s job is to get a balance paid in full. But in many instances, they’re willing to negotiate. Be firm and offer to pay what you can afford. They may accept that amount to close the file. You also can ask about a payment plan.

It’s important to know your rights in debt collection. Debt collectors can’t call you an unreasonable number of times or outside of the hours of 8AM to 9PM in your time zone. They also can’t:

• Call you after you send a letter asking them to stop (though they can use other communication methods, and stopping calls doesn’t make the debt go away)

• Use deceptive or misleading tactics, such as telling you that you will go to jail if you don’t pay or saying they work for a credit bureau

• Threaten to tell others about your debt (except for your lawyer or spouse)

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There are other serious consequences of unpaid medical debt beyond dealing with debt collectors. They include:

• Negative items on your credit report

• Decreased credit score

• Lawsuits

• Court judgments that garnish your wages or bank account, or place a lien on your home

• Bankruptcy

Does unpaid medical debt go away?

Unpaid medical debt usually doesn’t disappear. Typically, outstanding healthcare bills end up in collections. As mentioned before, a collection can turn into a lawsuit or lead to bankruptcy.

Paying medical debt not only gives you peace of mind, but will also keep negative items off your credit report.

Beginning July 1, 2022, the three credit-reporting bureaus will wait 1 year before reporting unpaid medical debt. And starting in 2023, medical debts less than $500 will not be added to credit reports.

However, unpaid medical debt that is reported is likely to remain on your credit report for 7 years.

10 tips for paying a high medical bill

If you have received a high medical bill, try not to panic. It’s very important to take action before your account is past due or goes to collections. Communication with the medical provider or facility is key. The goal is to reduce your bill to affordable payments or wipe out the balance altogether.

Here are some steps you can take to tackle a large medical bill.

1. Make sure the debt is legally due

Under the No Surprises Act, which became effective in 2022, private insurers can no longer bill you extra for most emergency services — even if the services were out of network or did not have prior authorization. And you can’t be charged extra for out-of-network services received at an in-network facility. The new law also bans balance billing, which is when you’re held responsible for the remainder of a surprise bill after your insurance company pays the in-network charges.

2. Verify the charges are accurate

Check the dates and services on your bill. Make sure the right charges have been assigned to you and that you have not been overcharged or billed more than once for anything. Thanks to hospital price transparency, you can check the price of a service, item, or procedure at facilities in your area to see if you were charged fairly. If you have health insurance, make sure your plan has paid its share.

3. Request a discount

Don’t be afraid to ask for a discount. This officially reduces the amount owed. If you don’t have insurance or choose to pay out of pocket, ask to be charged at Medicare rates — which can lead to deep discounts.

4. Seek debt forgiveness or debt settlement

Debt forgiveness or debt settlement are other ways to reduce your medical bills. They differ from receiving a discount, which reduces the official amount owed. 

Debt forgiveness, also known as debt cancellation, is when a creditor no longer pursues a debt. The wiped-away debt may be reported to the IRS, and the amount could be taxed as income. Debt settlement or paying less than what is owed can impact your credit score, and the unpaid portion can be reported for tax purposes.

5. Ask about financial assistance programs

You may qualify for help paying bills and even medical debt forgiveness. The U.S. Department of Health and Human Services maintains a state-by-state list of more than 100 financial assistance programs that help people with healthcare and medical expenses. 

Many hospitals require you to apply for Medicaid to see if you qualify for government insurance for people with low incomes. Then, if you’re not eligible for Medicaid coverage, you can apply for help with medical bills from the hospital. That application may include providing copies of pay stubs, bank statements, tax returns, and other financial documents.

6. Ask about indigent care and charity care programs

Under U.S. law, nonprofit hospitals must provide charity care. Some for-profit hospitals do, too. These programs provide free and low-cost medical treatment — including emergency room services — for people who can’t pay. Providing charity care allows hospitals to write off some or all of your charges.

7. Set up a monthly payment plan

If none of the earlier advice knocks down your bill, offer to make monthly payments directly to the healthcare provider. This is often a better option than potentially high-interest medical financing, paying the bill with a credit card, or not paying at all. 

Although they may include a late fee, medical bills rarely charge interest. And in many instances, paying something monthly — even a fraction of the balance — can prevent the bill from being turned over to a collection agency or damaging your credit.

8. Find special help if you’re a veteran

If you are a veteran, Veterans Affairs (VA) offers free debt counseling and may be able to help you find assistance for medical bills. In April 2022, the White House announced that the VA would stop reporting most unpaid VA Care medical bills to credit agencies and would provide more assistance to help veterans eliminate their medical debt.

9. Consider debt consolidation

Debt consolidation can help you avoid bills going into collections and unpaid medical debt having a negative impact on your credit score. You can also avoid lawsuits and bankruptcy. 

Medical debt consolidation could mean securing a personal loan, 401(k) loan, home equity line of credit, or credit card to pay off medical debt. You’ll preserve your credit-worthiness and have more time to pay. But, this new debt might temporarily ding your credit score and likely means monthly payments will be added to your budget.

10. Use bankruptcy if you have no other options

As a last resort, bankruptcy may be the right option to address your medical debt. Chapter 7 can help you liquidate assets to wipe out your debt. Chapter 13 is a reorganization where you pay all or some of your debts in 3 to 5 years. Your credit score typically drops when you file bankruptcy.

How can charitable organizations help with a medical bill I can’t afford?

Many nonprofit organizations assist with medical bills. For instance, Cameron’s Crusaders will help with medical bills for children in the New England area. The HealthWell Foundation helps underinsured people pay out-of-pocket costs not covered by their health plans. There are also organizations such as RIP Medical Debt that don’t accept individual requests but are working to abolish medical debt.

Some other nonprofits that can help with medical bills — many for specific conditions and circumstances — include:

• CancerCare, which offers copayment assistance for people with insurance 

• Leukemia & Lymphoma Society, which offers financial assistance for people with certain conditions

• Patient Access Network (PAN) Foundation, which helps underinsured people with life-threatening, chronic, and rare conditions

• Patient Advocate Foundation, a good starting point to find grant programs for which you are eligible that can help you cover medical expenses

• UnitedHealthcare Children’s Foundation, which offers grants of up to $5,000 for specific medical costs

• Upsolve, a free online community that helps people with debt, including legal help

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Written by:

Cindy George, MPH

Cindy George is the senior personal finance editor at GoodRx. She is an endlessly curious health journalist and digital storyteller.

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