2023 bureau changes
Since April 11, 2023, the three major credit bureaus (Equifax, Experian, TransUnion) made significant changes to how medical debt is reported:
- Medical collections under $500 removed: All medical collections under $500 were removed from credit reports
- Paid medical collections removed: All paid medical collections were removed from credit reports, regardless of amount
- Collections under 1 year old excluded: Medical collections under 1 year old are excluded from credit reports (giving time to resolve insurance disputes)
These changes were made voluntarily by the credit bureaus in response to Consumer Financial Protection Bureau (CFPB) research showing that medical debt is less predictive of creditworthiness than other types of debt.
Impact: The CFPB estimates that these changes removed medical debt from millions of credit reports, improving credit scores for many consumers. However, medical debt over $500 that is unpaid and over 1 year old may still appear on credit reports.
Federal rule developments (2025 status)
In 2025, the Consumer Financial Protection Bureau (CFPB) finalized a rule to remove medical bills from credit reports entirely. However, litigation and a hold on the rule have added uncertainty about when and how it will be implemented.
What the rule would do: The CFPB's rule would prohibit credit bureaus from including medical debt on credit reports, regardless of amount or payment status. This would be a significant expansion of the 2023 voluntary changes.
Current status: The rule is currently on hold due to litigation. The CFPB is working to resolve the litigation and implement the rule, but the timeline is uncertain.
What to do: Check the CFPB's website for updates on the rule's status. In the meantime, the 2023 voluntary changes still apply: medical collections under $500, paid medical collections, and collections under 1 year old are excluded from credit reports.
Present neutrally: The federal rule is in flux, so it's important to check the current status before making decisions based on the rule. Consult the CFPB's website or a credit counselor for the latest information.
Practical steps to dispute
If you have medical debt on your credit report, you can take steps to dispute it:
- Dispute insurance delays: If your medical debt is due to insurance delays or denials, dispute it with the credit bureau and provide proof of insurance coverage
- Request charity care: If you qualify for charity care or financial assistance, request it from the medical provider and dispute the debt if it's still reported
- Set up payment plans: If you can't pay the debt in full, set up a payment plan with the medical provider and dispute the debt if it's still reported as a collection
- Dispute errors: If the debt amount, date, or creditor information is incorrect, dispute it with the credit bureau and provide proof of the error
- Check if it's under $500: If the medical debt is under $500, it should have been removed in 2023. If it's still on your report, dispute it
- Check if it's paid: If you've paid the medical debt, it should have been removed in 2023. If it's still on your report, dispute it
- Check if it's under 1 year old: If the medical debt is under 1 year old, it should be excluded from your report. If it's still on your report, dispute it
How to dispute: File a dispute with each credit bureau (Equifax, Experian, TransUnion) online, by mail, or by phone. Provide proof of your dispute (insurance coverage, payment receipts, charity care approval, etc.). The credit bureau must investigate and respond within 30 days.
Keep records: Keep copies of all correspondence, dispute letters, and proof of your dispute. This evidence can help if you need to escalate the dispute or file a complaint.
FAQ
Why is an old medical bill back on my credit report?
If an old medical bill reappears on your credit report, it may be due to a re-reporting by the collection agency or a credit bureau error. Dispute it with the credit bureau and provide proof that it should have been removed (under $500, paid, or under 1 year old).
How do I dispute medical debt on my credit report?
File a dispute with each credit bureau (Equifax, Experian, TransUnion) online, by mail, or by phone. Provide proof of your dispute (insurance coverage, payment receipts, charity care approval, etc.). The credit bureau must investigate and respond within 30 days.
Will medical bills still show on my credit report?
Medical bills over $500 that are unpaid and over 1 year old may still appear on credit reports. However, medical collections under $500, paid medical collections, and collections under 1 year old are excluded from credit reports under the 2023 voluntary changes.
What if the federal rule is implemented?
If the CFPB's rule is implemented, medical bills would be removed from credit reports entirely, regardless of amount or payment status. However, the rule is currently on hold due to litigation, so the timeline is uncertain. Check the CFPB's website for updates.
Can I still be sued for medical debt?
Yes, medical debt can still be collected and sued upon, even if it's removed from credit reports. However, the statute of limitations may apply, and you may have defenses (insurance coverage, charity care, payment plans). Consult an attorney if you're sued for medical debt.
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