Medical debt is a very real problem in the U.S. According to Gallup, about 31 million Americans (roughly 12% of U.S. adults) took on loans or credit cards to pay their medical bills in 2024. The total borrowing amount for that year is an estimated $74 billion.
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If you’re struggling with medical debt, you might have options. Here are some places that could get rid of your medical debt— or at least help make it more manageable.
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States Offering Medical Debt Relief Based on Income or Law
You could receive medical debt relief if you live in certain states and meet certain criteria. This may only apply to those with debt written off by collectors as being “uncollectable.”
For example, a recent law in Vermont will eliminate up to $100 million in “uncollectable” medical debt from lower- and middle-class Vermonters. This law will also wipe medical debt from these individuals’ credit scores.
In Orange County, Florida, an estimated 310,000 residents will have $472 million in medical debt wiped clean. To qualify, these individuals must either have medical debt equalling or exceeding 5% of their household income, or fall below the federal poverty guidelines.
And in Los Angeles, there’s the L.A. County Medical Debt Relief Program, which is designed to relieve medical debt. In the first round of this program, more than $183 million in medical debt was eliminated.
Check your state or county to see if there are medical debt relief options for you. You might need to owe a certain amount or earn under a certain income threshold to qualify.
Charitable Foundations
Certain charitable foundations, community groups or churches will help with medical debt. Even if they don’t fully eliminate it, it doesn’t hurt to check what’s available.
“Some states’ laws require hospitals to offer ‘charity care’ — free or reduced-price services — to those who qualify,” said Austin Kilgore, analyst with the Achieve Center for Consumer Insights at Achieve.
Debt Management Plan Through Credit Counseling
A debt management plan is a program you set up with a credit counselor to get a handle on your debts so you can pay them off over time. You’ll still be responsible for your medical debt, but you might get a lower interest rate than if you were to, say, put that debt on a loan or credit card.
Billing Department
The hospital’s billing department isn’t likely to fully eliminate your medical debt, but you might be able to negotiate with them.
“When you receive the bill, and insurance has paid everything and there is still a patient balance that is unaffordable to you — speak directly to the billing department to see if the remaining balance can be negotiated down,” said Dr. Noor Ali, founder at Dr. Noor Healthcare Advisor. “Oftentimes, practices would rather get some money than no money.”
If you have medical debt, you can also reach out to your provider directly. Sometimes, they’ll offer payment plans or reduce how much you owe.
Debt Settlement Company
Debt settlement shouldn’t be your first choice, but it can provide the relief you need if things get dire. Just be sure to choose a legitimate company.
“Reputable firms are regulated by the Federal Trade Commission, and work to lower principal balances owed,” said Kilgore. “They can negotiate with medical providers (for debt incurred with them directly) as well as with credit card companies.”
Know that debt settlement can damage your credit score. Companies can charge expensive fees. You might also need to pay taxes on the amount of debt forgiven.
Patient Advocacy Company
If you need help filing a claim with your insurance company against an unexpected medical bill, a patient advocacy company could help.
“There are patient advocacy companies, like Counterforce Health, that offer free resources for patients to navigate the appeals process and fight back against denied claims,” said Neal K. Shah, America’s Chief Elder Officer and CEO at CareYaya Health Technologies.
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This article originally appeared on GOBankingRates.com: 6 Places That Could Get Rid of Your Medical Debt
