Navigating Medical Debt: Your Options and Rights
Medical debt affects over 100 million Americans, totaling $220 billion, often from unexpected illnesses or accidents. Unlike other debts, it comes with unique protections and options. At Conquer Solutions, we specialize in resolving medical debt, helping clients negotiate, settle, or find relief without long-term harm.
This guide explores your options for handling medical debt, key rights and protections (including 2025 updates), and steps to take control. With the right knowledge, you can reduce or eliminate this burden.
Understanding Medical Debt
Medical debt arises from bills for services, often surprise or inflated. Common causes: Uninsured procedures, out-of-network charges, billing errors.
2025 Update: The CFPB finalized a rule in January to remove medical bills from credit reports and prohibit their use in lending decisions. However, a federal court reversed this in July 2025, leaving status uncertain—check current laws.
Your Rights Under Key Laws
Several laws protect you.
No Surprises Act (2022 Onward)
Protects from surprise bills for emergency services and certain non-emergency out-of-network care. Providers must bill at in-network rates; you pay only deductibles/co-pays. Dispute if overcharged via cms.gov/nosurprises.
Fair Credit Reporting Act (FCRA)
Medical debt under $500 isn't reported; wait periods apply. Despite CFPB rule reversal, some agencies voluntarily exclude it.
Other Protections
HIPAA: Privacy of medical info.
State Laws: Vary; e.g., California caps interest.
If in collections, FDCPA applies (see next blog).
Options for Dealing with Medical Debt
Multiple paths to resolution.
Option 1: Review and Dispute Bills
Request itemized bill: Errors in 80% of cases.
Dispute inaccuracies: Write to provider within 60 days.
Appeal denials: Insurers must explain.
Tip: Use CFPB templates.
Option 2: Negotiate with Providers
Ask for discounts: Hospitals offer 20-50% off for cash or hardship.
Payment Plans: Interest-free installments.
Charity Care: Income-based forgiveness; apply via hospital financial aid.
Example: Negotiate $10,000 bill to $6,000.
Conquer Solutions handles negotiations, often securing better terms.
Option 3: Seek Financial Assistance
Nonprofits: Dollar For crushes bills; Patient Advocate Foundation helps.
Government Programs: Medicaid retroactive coverage.
Crowdfunding: GoFundMe for community support.
Option 4: Debt Settlement or Consolidation
Settle for less: Providers may accept 50%.
Consolidate: Low-interest loans or cards.
Option 5: Bankruptcy as Last Resort
Medical debt is dischargeable in Chapter 7/13, but impacts credit 7-10 years.
2025 Note: With potential credit report exclusions, settlement is preferable.
Option 6: Credit Counseling
Nonprofits like NFCC offer plans.
Steps to Take Action
Gather bills/reports.
Contact provider for explanations/plans.
Apply for aid.
Negotiate/settle.
Monitor credit.
Avoid scams: No upfront fees for relief.
Case Studies
Client Mike: $15,000 ER bill disputed under No Surprises Act, reduced to $2,000. Another settled $50,000 debt for $25,000 via Conquer.
Preventing Future Medical Debt
Choose in-network providers.
Understand coverage.
Build health savings accounts (HSAs).
At Conquer Solutions, we integrate medical debt strategies into broader plans.
Contact us for a free medical debt audit—navigate this with confidence.