Medical Debt on Credit Report: What the New Rules Mean
HSChange Editorial Team
Health Policy Research Team, Consumer Health Guidance
Reviewed by Dr. Sarah Mitchell, MD, MPH, Board-Certified Internal Medicine
Last updated: April 4, 2026
The rules around medical debt and credit reports have shifted several times in the past few years. A CFPB rule that would have removed all medical debt from credit reports was finalized in January 2025 but struck down by a federal court in July 2025. So what protections actually exist right now?
Current Protections (2025-2026)
Medical debt under $500 does not appear on your credit report. Paid medical collections are removed from credit reports once resolved. There's a 365-day waiting period before unpaid medical debt can appear on your report, giving you a full year to sort things out. These protections came from voluntary changes by the three major credit bureaus (Equifax, Experian, TransUnion) in 2022-2023, not from the CFPB rule that was struck down.
What the CFPB Tried to Do
In January 2025, the CFPB finalized a rule to remove all medical debt from credit reports by amending Regulation V under the Fair Credit Reporting Act. It would have prohibited consumer reporting agencies from including any medical debt information. In July 2025, a federal court in Texas vacated the rule, finding it exceeded the CFPB's statutory authority. The rule is not in effect.
How Medical Debt Affects Your Credit Now
Unpaid medical debt over $500 can appear on your credit report after the 365-day grace period. Once reported, it stays for 7 years from the original delinquency date. About 15 million Americans currently have medical bills on their credit reports. Medical debt remains the largest single source of debt in collections on consumer credit reports.
What You Can Do
Pay or settle the debt within the 365-day window to prevent it from appearing on your report. If it's already reported, paying it will get it removed. Dispute any medical debt on your report that you believe is inaccurate. Apply for financial assistance at nonprofit hospitals, which can reduce or eliminate the underlying bill. Request payment plans, which keep the account with the provider and out of collections.