Medical Debt Calculator

Medical debt is the leading cause of bankruptcy in the United States, affecting an estimated 100 million Americans. Unlike other forms of debt, medical bills are often unexpected and can be overwhelming. However, there are more options for managing medical debt than most people realize.

Negotiate your bill. Medical charges are often negotiable. Hospitals and providers frequently accept 25-50% less than the billed amount, especially for uninsured or underinsured patients. Ask for an itemized bill first -- billing errors are common and can inflate charges. Then call the billing department and ask about financial hardship programs, charity care, or prompt-payment discounts.

Request a payment plan. Most medical providers offer interest-free payment plans if you arrange them before the debt goes to collections. Monthly payments of $50-$200 are typically accepted, and as long as you are making regular payments, the provider usually will not send your account to collections.

Avoid putting medical debt on credit cards. Medical providers typically charge 0% interest on payment plans. The moment you put that debt on a credit card at 22-28% APR, you convert interest-free debt into some of the most expensive debt possible. If you must use a card, look for a 0% intro APR balance transfer card.

Important: as of 2023, medical debt under $500 no longer appears on credit reports, and paid medical collections are removed. Additionally, the three major credit bureaus no longer include medical debt in collections on credit reports if it has been paid. These changes have significantly reduced the credit impact of medical debt.