Debt Relief for Medical Expenses: How New Policies Are Empowering Patients

Exciting News for 2025: Protecting Your Credit from Medical Debt

As we kick off the new year, there’s significant news for anyone burdened by medical debt. A recent announcement from the White House introduces groundbreaking protections that prevent medical providers from reporting unpaid bills to credit bureaus. This change is a huge win for consumers and has the potential to reshape how medical debt is managed in the U.S.

What’s Changing?

The new regulations prohibit medical providers from reporting unpaid bills to credit agencies. Previously, unpaid medical debt could negatively impact your credit score for years, but now:

• Medical debt will no longer be reported to credit bureaus.
• Negative medical debt on credit reports dating back 10 years (to 2014) may be removed.
• Certain medical debts may be forgiven based on income thresholds, such as being at or below 300% of the federal poverty level.

This supersedes existing state laws, like Texas’ 12-month reporting delay, offering nationwide relief.

Why This Matters

Medical bills often include inflated charges for services, especially from hospitals, emergency rooms, and labs. These high costs have led many consumers to struggle with debt that damages their credit. With these new protections:

• You can address your medical debt without fear of long-term credit damage.
• Relief is possible for older medical debt still lingering on your credit report.

What Should You Do?

Here are steps to take advantage of these new protections:

1. Check Your Credit Report

• Obtain a free copy of your credit report at AnnualCreditReport.com.
• Look for any medical debts listed and verify their accuracy.

2. Verify Your Bills

• Never pay the first medical bill you receive. Errors are common due to billing inaccuracies.
• Use the CPT codes (billing codes) on your bill to compare charges with Medicare rates at Medicare.gov. A fair rate is typically no more than twice the Medicare reimbursement amount.

3. Negotiate a Fair Amount

• If your bill is accurate but overpriced, negotiate with the provider or collection agency.
• Wait for a few collection notices before negotiating, as providers are often more willing to settle later in the process.

4. Be Patient and Persistent

• Collections agencies may still attempt to recover debts, but without the leverage of credit reporting, your bargaining power increases.

Looking Ahead

This policy shift could incentivize healthcare providers to reconsider their billing practices, reducing the markup on services and encouraging fairer pricing. While providers may still send debts to collections, they will no longer have the power to damage your credit score as leverage.

Take Control of Your Health and Finances

This news is a major victory for consumers, but navigating medical bills and insurance can still be overwhelming. Let’s work together to ensure your health insurance plan meets your needs and protects you from unexpected costs.

📅 Schedule a consultation today at jkappconsulting.com to get started!