Medical debt credit reporting has changed a lot since 2022, and in 2026 the rules are a patchwork. The three credit bureaus still follow voluntary policies that remove paid medical collections, exclude medical collections under $500, and wait one year before reporting new medical collections. A broader federal rule that would have removed most medical debt from credit reports was finalized in January 2025 but struck down by a court in July 2025, so it isn’t in effect. Meanwhile, about 15 states — including California — have passed their own laws restricting medical debt on credit reports, although a federal position asserting that federal law preempts those state laws has created uncertainty.

What that means for you: most small and paid medical collections should already be gone from your reports, larger unpaid ones may still appear in many states, and your state’s law may give you extra protection. This guide explains how we got here, what applies now, and what to do about medical debt on your credit reports.

Medical debt rules have changed several times — here’s where things stand.

Key takeaways

• Bureau policies still remove paid medical collections and exclude those under $500.
• New medical collections aren’t reported until they’ve been in collections for a year.
• The CFPB’s 2025 federal medical debt rule was vacated and isn’t in effect.
• About 15 states, including California, have their own medical debt reporting laws.
• A federal preemption dispute means state protections could face legal challenges.
• Newer scoring models give medical collections less weight.

How the Rules Evolved

The key changes, in order.

2022–2023: The credit bureaus act

Equifax, Experian, and TransUnion announced voluntary changes that took effect in stages:

• Paid medical collections would no longer be reported
• The waiting period before new medical collections could appear grew from six months to one year
• Medical collections under $500 would no longer be reported

These changes removed a large share of medical collections from credit reports nationwide.

State laws begin to spread

Starting around 2023, states began passing their own laws restricting medical debt on credit reports. New York was among the first, followed by others. Some laws ban medical debt reporting entirely; others raise dollar thresholds, extend waiting periods, or limit how medical debt can be used in lending decisions.

January 2025: A federal rule is finalized

The Consumer Financial Protection Bureau finalized a rule that would have barred most medical debt from credit reports and limited lenders’ use of medical debt information.

July 2025: The federal rule is struck down

A federal court in Texas vacated the rule, finding the CFPB had exceeded its authority under the Fair Credit Reporting Act. The rule never took effect.

Late 2025 onward: A preemption dispute

After the federal rule was vacated, the CFPB issued an interpretation asserting that the Fair Credit Reporting Act preempts state laws restricting medical debt reporting. That position could be challenged, and it has created uncertainty about how state laws will be enforced going forward.

2026: A patchwork

As of 2026, protection depends on the bureau policies, your state’s law, and how that law is treated. Some state laws took effect as recently as January 2026.

What Applies to You Now

Which protections apply, and to whom.

Everyone: the bureau policies

No matter where you live, under current bureau policy:

• Paid medical collections should be removed
• Medical collections under $500 shouldn’t be reported
• New medical collections shouldn’t appear until they’ve been in collections for a year

These policies are voluntary, so the bureaus could change them, but they remain in effect as of this writing.

Residents of states with medical debt laws

About 15 states have their own laws. States commonly listed include California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington, although lists vary by source and details differ.

State laws add protection — but details vary.

If you live in one of these states, medical debt that the bureau policies would still allow may be restricted by state law. Because of the preemption dispute, check your state attorney general’s website or consumer protection office for the latest guidance.

California residents

California has enacted its own law restricting medical debt on consumer credit reports. If you’re a California resident and see medical debt on your credit report, cite California law in your dispute, and contact the California Department of Financial Protection and Innovation or the state attorney general if it isn’t resolved.

Borrowers scored with newer models

Newer credit scoring models, including FICO 9, FICO 10, and VantageScore 4.0, give medical collections less weight than other collections, or exclude paid medical collections. Older models still used by many mortgage lenders may treat medical collections more like other collections.

What’s Still Not Protected

Even with these changes, medical debt can still affect your credit in some situations:

• Unpaid medical collections over $500 that have been in collections for more than a year, in states without additional protections
• Medical bills paid with a credit card, which become ordinary credit card debt
• Medical credit cards and medical loans, which are reported like other credit accounts
• Lawsuits and judgments over medical debt, which are separate from credit reporting

What to Do About Medical Debt Now

Five steps to take now.

1. Check all three credit reports

Pull your reports at AnnualCreditReport.com and list every medical collection, with the balance, the original creditor, and the date it went to collections.

2. Dispute entries that shouldn’t be there

Dispute with each bureau any medical collection that is:

• Paid
• Under $500
• Less than a year old in collections
• Restricted by your state’s law
• Inaccurate in any other way

3. Fix the bill at its source

Many medical collections result from billing errors or insurance problems. Ask the provider for an itemized bill, compare it with your explanation of benefits, and ask the provider to rebill insurance if needed.

4. Ask about financial assistance

Nonprofit hospitals are required to have financial assistance policies. You may qualify for a reduced bill or full forgiveness — sometimes even after an account has gone to collections.

5. Keep records

Keep itemized bills, insurance statements, correspondence, and proof of payment. If a medical collection reappears later, your records make it easy to dispute.

Should You Pay Medical Collections?

It depends on the situation:

• If the bill is wrong or should have been covered by insurance, fix it with the provider first.
• If you qualify for financial assistance, apply before paying.
• If the debt is valid and over $500, paying removes it from your credit report under bureau policy.
• If the collection is under $500, it shouldn’t be on your report, but you may still owe the debt.

Before paying a collector, validate the debt and confirm the amount. For more, see our guide on removing collections from your credit report.

What Could Change Next

Medical debt credit reporting remains an active area of law and policy. Possible developments include new state laws, court decisions on federal preemption, changes to bureau policies, and new scoring models. Check your credit reports regularly and watch for updates from your state.

What the Federal Rule Would Have Done

The CFPB’s 2025 rule would have gone much further than the bureau policies. It would have:

• Removed most medical debt from credit reports, regardless of amount
• Prohibited lenders from using medical information in most credit decisions
• Prevented repossession of medical devices used as collateral

Because the rule was vacated, none of those provisions took effect. Consumers are left with the bureau policies and state laws.

How State Laws Differ

State medical debt laws aren’t identical. Common approaches include:

• Complete bans on reporting medical debt to consumer reporting agencies
• Higher dollar thresholds than the bureaus’ $500 limit
• Longer waiting periods before medical debt can be reported
• Limits on using medical debt in certain lending decisions, such as mortgages
• Collection restrictions, such as limits on lawsuits over small medical bills, liens on homes, or wage garnishment in some states

Some states also fund programs that buy and forgive residents’ medical debt. Check your state’s rules to see what applies.

How to Use State Law in a Dispute

If you live in a state with a medical debt reporting law:

• Find the law on your state attorney general’s or consumer protection office’s website.
• Identify what it prohibits — for example, all medical debt reporting or debt under a certain amount.
• Cite it in your dispute with each bureau and with the collector.
• File a complaint with your state attorney general or consumer protection agency if the entry isn’t removed.

Because of the federal preemption dispute, results can vary. Keep records and follow up.

Medical Debt and Mortgage Applications

Mortgage lenders have traditionally used older FICO scoring models, which may treat unpaid medical collections more like other collections. If you’re planning to buy a home:

• Check your reports early for medical collections
• Dispute entries that shouldn’t be there under bureau policy or state law
• Resolve valid medical collections before applying, if possible, since paid medical collections are removed
• Ask your lender how it treats medical collections in underwriting

A Short History in One Table

Special Situations

Medical bills on credit cards

If you paid a medical bill with a credit card, it’s credit card debt, not medical debt. Missed payments and high balances are reported normally. Consider asking the provider for an interest-free payment plan before putting large medical bills on a card.

Medical credit cards and financing

Cards and loans used specifically for healthcare are credit accounts and are reported like any other. Watch for deferred-interest promotions, which can charge all the interest back if the balance isn’t paid in full by the deadline.

Medical debt in a payment plan with the provider

Many providers offer payment plans that aren’t reported to the credit bureaus at all. Ask how a plan will be reported before you sign up.

Medical debt after a death

A deceased person’s medical debts are generally paid from their estate. Family members usually aren’t personally responsible unless they co-signed or state law makes a spouse responsible for certain expenses.

Where to Get Help

• Hospital financial counselors can help with financial assistance and payment plans
• Your state attorney general can explain your state’s medical debt protections
• The Consumer Financial Protection Bureau accepts complaints about credit reporting and debt collection
• Legal aid organizations can help if you’re sued over medical debt
• Consumer attorneys can help if medical debt is reported in violation of the law

An Example of How the Rules Apply

Here’s an illustrative example. A California resident has three medical collections: a paid $1,200 hospital bill, an unpaid $300 lab bill, and an unpaid $2,100 emergency room bill that went to collections 18 months ago.

• The paid $1,200 collection should be removed under bureau policy.
• The unpaid $300 collection shouldn’t be reported because it’s under $500.
• The unpaid $2,100 collection could be reported under bureau policy alone, but California’s own law restricts medical debt reporting, so she disputes it and cites state law.

She also asks the hospital about financial assistance for the $2,100 bill, since removing it from her credit report doesn’t erase the debt.

Questions to Ask Before You Pay a Medical Collection

• Is the bill itemized, and are the charges correct?
• Did insurance process the claim correctly?
• Do I qualify for financial assistance?
• Is this collector authorized to collect for the provider?
• Will paying remove the collection from my credit report?

How to Stay Informed

Because these rules are still evolving, a few habits help:

• Check your credit reports every few months at AnnualCreditReport.com
• Watch for announcements from your state attorney general about medical debt laws
• Keep records of any medical debt you’ve disputed or resolved
• Ask providers how they report unpaid bills before agreeing to payment plans

The fundamentals — reviewing bills, using insurance correctly, applying for financial assistance, and disputing entries that shouldn’t be reported — work no matter how the rules change.

Frequently Asked Questions

Is medical debt still on credit reports in 2026?

Some is. Paid medical collections and those under $500 shouldn’t be reported, and new medical collections wait a year. Larger unpaid medical collections may still appear in states without additional protections.

What happened to the federal medical debt rule?

The CFPB finalized it in January 2025, but a federal court vacated it in July 2025. It isn’t in effect.

Does California ban medical debt on credit reports?

California has enacted its own law restricting medical debt on consumer credit reports. Because of the federal preemption dispute, check current guidance from the state.

Which states have medical debt credit reporting laws?

About 15 states, including California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington. Details vary.

Does paying medical debt remove it from my credit report?

Yes. Paid medical collections are removed under current credit bureau policy.

Can I still be sued for medical debt?

Yes, within the statute of limitations, unless your state restricts it. Credit reporting rules don’t eliminate the debt.

Do credit scores still count medical debt?

Newer models give it less weight or ignore paid medical collections. Older models may still count it.

Are the bureau medical debt policies permanent?

They’re voluntary policies, so the bureaus could change them. As of this writing, they remain in effect.

Does my state’s law apply if I moved?

State laws generally protect residents of that state, and details can depend on where you live and where the debt was incurred. Check the law in your current state.

Can lenders still see medical debt that’s not on my credit report?

If it’s not on your credit report, it won’t appear in a credit check. Lenders may ask about debts on an application, and some may see medical payments in bank statements.

Where can I learn about my state’s rules?

Your state attorney general’s office or consumer protection agency usually publishes guidance on medical debt.

Should I dispute medical debt that’s accurate?

If it’s paid, under $500, less than a year old in collections, or restricted by your state’s law, dispute it — it shouldn’t be reported even if the underlying bill was valid.

Will medical debt reporting rules keep changing?

Possibly. New state laws, court decisions, and bureau policy changes could affect what’s reported. Check your reports and your state’s guidance periodically.

Does medical debt affect renting an apartment?

Some tenant screening reports include collections. If a medical collection appears on a screening report and shouldn’t be reported, dispute it with the screening company.

Can a hospital report medical debt directly to the bureaus?

Some providers report accounts directly, but most medical debt appears on credit reports through collection agencies. The same bureau policies apply.

Did the bureau policies change in 2026?

As of this writing, the three bureaus’ medical debt policies from 2022 and 2023 remain in effect. Check for updates if you’re reading this later.

What should I do if a medical collection reappears?

Dispute it again with the bureau, attach proof that it was paid or removed before, and file a complaint if it isn’t corrected.

Is there any federal law against reporting medical debt?

There’s no federal ban in effect. The Fair Credit Reporting Act limits how medical information can be shared and requires accurate reporting, but the 2025 rule that would have banned most medical debt reporting was vacated.

Does the bureau policy apply in every state?

Yes. The bureaus apply their medical debt policies nationwide. State laws may add more protection on top.

What happened to the six-month waiting period?

The bureaus extended it to one year in 2022, giving consumers more time to resolve medical bills before they can be reported.

What if my state isn’t on the list?

Lists of states vary by source and by how each law is classified. Check your own state’s attorney general or consumer protection office for current rules.

Will medical debt still show up on older credit reports I’ve saved?

Old copies won’t change, but your current reports should reflect the rules now in effect. Pull a fresh report to see what lenders see today.

Is there anything I can do to speed up removal?

File disputes with each bureau reporting a medical collection that shouldn’t be there, and include clear documentation. Bureaus generally must investigate within 30 days.

Does the one-year waiting period apply to old medical debts?

It applies to when a medical debt can first be reported after going to collections. Older medical collections still follow the other rules — paid ones should be removed, and those under $500 shouldn’t appear.

The Bottom Line

Medical debt credit reporting has changed significantly, but not in one clean step. Bureau policies still remove paid and under-$500 medical collections and delay new ones for a year. The federal rule was struck down. About 15 states, including California, have added their own protections, though federal preemption questions remain. Check your reports, dispute medical collections that shouldn’t be there, fix medical bills at their source, and keep an eye on your state’s guidance as the rules continue to evolve.

For a broader plan, see our step-by-step guide on how to fix your credit.

Medical Collections on Your Report?

Strong Credit Report has helped consumers across California and nationwide since [year] dispute medical collections and other credit report errors. Your first consultation is free, and we’ll tell you honestly what you can handle yourself.

Schedule a free consultation or call 800-603-8045.

Strong Credit Report is a credit repair organization as defined under the Credit Repair Organizations Act. We cannot guarantee specific results or the removal of accurate information. You have the right to dispute inaccurate information yourself at no cost. This article is general information, not legal advice. Medical debt rules are changing; confirm current rules in your state.