Medical debt rules, tracked so you do not have to.

Medical debt is treated differently because it is involuntary, often confusing, and frequently the result of insurance failures rather than patient choice. The three national credit bureaus responded in 2022 and 2023 by removing paid medical collections, delaying reporting of medical collections until a year after the date of first delinquency, and excluding medical collections under $500. The CFPB finalized a rule in 2025 to remove medical debt from credit reports entirely and prohibit lenders from considering it, though its implementation has been subject to litigation. States have moved independently: Colorado, New York, and others have banned medical debt credit reporting outright; many states have enacted notice, payment plan, interest cap, and collection timing requirements specific to medical debt.

Nonprofit hospitals face an additional layer under Internal Revenue Code section 501(r), which requires a written financial assistance policy, widely publicized, with a 120-day notification period before any extraordinary collection action such as reporting, selling the debt, or legal action, and a 30-day written notice before the ECA. Hospitals must make reasonable efforts to determine FAP eligibility, and many states have strengthened these requirements.

HL Hunt treats medical debt as a distinct type with its own rule set. Reporting eligibility is checked per account against bureau, federal, and state rules, and most healthcare clients disable medical reporting entirely. 501(r) workflows track notification and ECA timing for nonprofit providers. State requirements are applied by patient location. Financial assistance eligibility is surfaced early, and outreach is empathetic and clear. As rules change, the compliance team updates them and clients are informed.