What medical debt relief means
Medical debt relief refers to strategies or programs that help people manage, reduce or resolve unpaid medical bills. Relief can come directly from a hospital or health care provider, through an insurance appeal, from a collections agency, through court action, bankruptcy or a structured payment plan.
Medical debt relief may help you:
- Reduce the total balance owed
- Lower your monthly payment
- Set up an interest-free payment plan
- Pause or stop collections temporarily
- Remove qualifying debt from collections
- Eliminate debt entirely in certain cases, such as charity care approval or bankruptcy
In short, medical debt relief focuses on making repayment more manageable, and in some cases, resolving the debt altogether.
Relief vs. forgiveness
Medical debt relief does not always mean your debt disappears. Relief often involves negotiating better terms, lowering payments or settling for less than the full balance. Forgiveness means the remaining balance is canceled and you no longer owe it. Some hospitals offer financial assistance programs that forgive qualifying bills, but full forgiveness is less common than negotiated relief.
How to get rid of medical debt
The term "medical debt relief" encompasses several different strategies. For example, you can negotiate your debt with a medical provider, and there are also options to help you pay less than you owe or erase medical debt completely.
Charity care
According to the Consumer Financial Protection Bureau (CFPB), the Affordable Care Act (ACA) requires all hospitals with 501(c)(3) nonprofit status to provide free or charity care to at least some customers in need. This benefit can come in the form of reduced medical bills or total forgiveness of debt, although hospital processes and budgets vary widely. Some states even have charity care laws that mandate a certain level of free care for people who meet income requirements.
Ask your medical provider or hospital if it offers charity care and how to apply. You can do this by asking for a hospital's Financial Assistance Policy (FAP) upfront, and by filling out an application and following up regularly to see if you qualify.
Negotiations with medical providers
You can reach out to hospitals and other medical providers to see if they’ll settle for less than you owe, or to get on a payment plan. First, though, the CFPB recommends making sure the bill is correct, assigned to the right person and in the right amount. Look for common billing errors like being charged for the same treatment twice. If there are errors, reach out to the medical center's billing office to get them fixed.
If you want to negotiate medical bills, you can request a meeting or call with a medical billing office and see where it goes. You may be able to settle for less than you owe if you're willing to make a one-time cash payment. Interest-free payment plans may also be available if you ask.
Outside help
There are many resources you can turn to both within and outside the medical system:
- Medical billing advocates can help you navigate the health care system and settle billing disputes if you're on a government health care program. The Centers for Medicare & Medicaid Services (CMS) offers a resource page on where to find an advocate.
- Many states have consumer assistance programs. CMS offers a state map to help you locate help. State agencies, including your state attorney general and state insurance department or insurance commissioner, may also be able to assist.
- Your hospital or health insurance provider may have a caseworker who can help you figure out where you stand with medical bills, which ones you owe and how to get back on track.
- Nonprofit credit counseling agencies can give you advice and offer help figuring out how to pay for medical bills and other unpaid debts.
Also, make sure you're aware of the No Surprises Act, which became law in January 2022 and protects against unexpected charges for those who have a group health plan or individual health insurance coverage.
This law can help you fight off surprise bills for emergency services from an out-of-network provider. Knowing how it works can help you figure out which medical bills you may not be liable for.
Debt settlement
Debt settlement is a process offered through third-party companies that promise to help you get out of debt for less than you owe. While fees do apply, these companies often help consumers out of debt in 24 to 48 months.
That said, debt settlement has risks since these companies ask you to stop paying all bills and instead send payments to a savings account in your name that will be used to settle debt later on. This often results in damage to your credit score due to nonpayment.
» COMPARE: Best debt settlement companies
Bankruptcy
Bankruptcy is an unfortunate but common type of medical debt relief. You can opt for Chapter 7 or Chapter 13 bankruptcy, although the right type to pursue depends on your financial situation, income and assets.
For example, Chapter 7 bankruptcy can help people with medical debt get almost all of their debts wiped away, whereas Chapter 13 protects some assets of value (like a home) while getting you on a payment plan to repay most of your debts over three to five years.
Note that bankruptcy can stay on your credit reports for up to 10 years, which can make it difficult to qualify for more credit during that time.
» MORE: How to get out of debt
How to consolidate medical debt
According to personal financial consultant Michael Sullivan of Take Charge America, debt consolidation for medical debt could make sense in certain situations. Specifically, he says he would consider it if all grace periods expire on repayment and debts are well over $500.
That said, Sullivan says it's important to understand that medical debt consolidation benefits you only if you get a lower interest rate. Many medical debts already have interest rates lower than credit card rates and sometimes less than personal loan rates. Some hospitals and medical providers also let you pay off medical debt with zero interest, so it wouldn't make sense to consolidate this debt with a separate loan or balance transfer credit card.
"There is no advantage to the consumer to transfer or consolidate low-interest and interest-free medical debt," he said.
Even so, you might opt to consolidate all your debts (including medical debts, personal loans and credit card debt) into a new personal loan with competitive rates and terms. This step can help you go from paying multiple bills each month to just one, and to get a lower average interest rate than you were paying across all your debts before.
» COMPARE: Best debt consolidation loan companies
How long does medical debt stay on a credit report?
Unpaid medical debt stays on your credit report for seven years from the last transaction. This means that, even in the worst-case scenario, potential damage from unpaid medical bills and other unpaid debts will stop being reported to the credit bureaus after this timeline is up.
Fortunately, as of January 2025, the CFPB created a rule that bans medical bills from being included on credit reports. This rule also increased borrowers protection and prohibits medical information from affecting lending decisions.
It’s important to know your rights when it comes to collections. While debt collectors can contact you about unpaid medical bills, they cannot harass you or make abusive calls. You also have the right to tell debt collectors to stop contacting you in writing.
» MORE: How to handle bill collectors
FAQ
How many Americans have medical debt?
According to KFF, more than 23 million Americans have medical debt. KFF also notes that 3 million of those people have more than $10,000 in unpaid medical bills.
What happens to medical debt when you die?
Unpaid medical debts are typically paid for out of a person's estate. When someone doesn't have any assets left to pay off medical debts and other bills after their death, most debts go unpaid.
How does medical debt relief work?
Medical debt relief works by reviewing your bill, verifying charges and exploring options such as hardship programs, insurance appeals or settlement offers. In some cases, providers may reduce the balance or agree to interest-free payments. If the debt is in collections, you may be able to negotiate a lump-sum settlement for less than the full amount owed.
Can medical debt relief erase my medical bills?
Sometimes. Certain hospitals offer charity care or financial assistance programs that can partially or fully forgive qualifying bills. Bankruptcy may also eliminate eligible medical debt. However, many relief options focus on reducing the balance or lowering payments rather than completely erasing what you owe.
Bottom line
Medical debt relief is not one-size-fits-all. The right approach depends on how much you owe, whether the bill is still with the provider or in collections and what you can realistically afford.
For smaller balances, negotiating directly with the hospital or setting up an interest-free payment plan may be enough. If the debt is larger, options such as financial assistance programs, settlement or structured repayment can significantly reduce the burden. Bankruptcy may eliminate qualifying medical debt, but it carries long-term credit consequences and is typically considered a last resort.
The key is to act early. The sooner you review your options, the more control you have over the outcome.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- KFF, "Americans’ Challenges with Health Care Costs." Accessed Feb. 21, 2026.
- National Library of Medicine, "Medical debt and collections in the United States." Accessed Feb. 21, 2026.
- Association of Health Care Journalists, "Report highlights depth and breadth of medical debt, affecting millions." Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "Is there financial help for my medical bills?" Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "What should I do if I can’t pay a medical bill?" Accessed Feb. 21, 2026.
- CMS.gov, "Find a Patient Advocate." Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "What is a debt relief program and how do I know if I should use one?" Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "How long does information remain on my credit report?" Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "Know your rights and protections when it comes to medical bills and collections." Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "Have medical debt? Anything already paid or under $500 should no longer be on your credit report." Accessed Feb. 21, 2026.
- KFF, "1 in 10 Adults Owe Medical Debt, With Millions Owing More Than $10,000." Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "What is a “surprise medical bill” and what should I know about the No Surprises Act?" Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "Does a person's debt go away when they die?" Accessed Feb. 21, 2026.
- Consumer Financial Protection Bureau, "CFPB Finalizes Rule to Remove Medical Bills from Credit Reports." Accessed Feb. 21, 2026.
