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Medical debt remains a significant issue in the United States. A report from Gallup reveals that approximately 31 million Americans—roughly 12% of adults—incurred loans or credit card debts to manage medical expenses in 2024, totaling an estimated borrowing amount of $74 billion.
If you’re facing medical debt challenges, there may be relief options. Below are various strategies that can help alleviate or manage your medical debt effectively.
Medical Debt Relief Options by State
Some states offer medical debt relief to residents based on income or specific criteria. This assistance typically applies to debts classified as “uncollectable” by collectors.
For instance, Vermont’s recent legislation will cancel up to $100 million in uncollectable medical debt for lower- and middle-income families, also removing such debts from their credit records. In Orange County, Florida, approximately 310,000 residents will see $472 million in medical debt eliminated, provided their debt is at least 5% of their household income or they fall below federal poverty thresholds.
Los Angeles has implemented the L.A. County Medical Debt Relief Program, which has successfully erased more than $183 million in medical debt during its initial phase. Review your local laws to determine whether you qualify for medical debt relief in your area.
Assistance from Charitable Organizations
Various charitable foundations, community groups, and churches can provide support for managing medical debt. Even if full elimination isn’t guaranteed, they may offer helpful resources.
Austin Kilgore, analyst at the Achieve Center for Consumer Insights, notes that some states mandate hospitals to offer “charity care”—free or reduced-cost services—for qualifying patients.
Debt Management Plans with Credit Counselors
Enrolling in a debt management plan with a certified credit counselor can help you manage your medical debts over time. While you will still owe the debt, credit counseling may provide you with lower interest rates compared to loans or credit cards.
Negotiation with Billing Departments
Though hospitals may not fully forgive your medical debts, negotiating with the billing department might yield some relief. Dr. Noor Ali, founder of Dr. Noor Healthcare Advisor, suggests discussing your bills directly to negotiate potentially lower balances. Many practices prefer receiving partial payments rather than none at all.
Debt Settlement Companies
Debt settlement should be considered carefully, ideally as a last resort. While legitimate companies can assist in negotiating your medical debt, it’s crucial to choose reputable organizations. Remember that debt settlement may adversely affect your credit score and can involve substantial fees.
Patient Advocacy Services
If you’re overwhelmed by unexpected medical bills, a patient advocacy company can help you navigate insurance claims or appeal denied claims. Companies like Counterforce Health offer free resources to assist patients in understanding and managing their medical billing disputes.
