THD Credit Consulting

Major Change in How Credit Reporting Agencies Will Report Medical Debt

Erik Kaplan

Erik Kaplan

Erik is the CEO and Founder of THD Credit Consulting

Starting July 1, 2022, the nation’s three largest credit reporting agencies will change how medical debt will be reported on credit reports.

These changes Include:

  • Paid medical debts will be removed from the consumers’ credit report immediately (previously medical debt remained on reports up to 7 years).
  • Unpaid medical debts won’t show up on your credit report for 1 year (up from six months).
  • Beginning in early 2023, if your medical debt is less than $500, it will be dropped from your credit report.

Medical debt is the largest source of personal debt in the US and accounts for 58 percent of bills in collections. In a recent Consumer Financial Protection Bureau report titled “Medical Debt Burden in the United States” it was found that medical debt collections are less predictive of future consumer performance then non-medical collections. This report also detailed issues to the US healthcare system and how mistakes are common as well as patients having difficulty getting these errors resolved or corrected.

The joint measures will result in the removal of nearly 70% of medical collection debt records from credit reports and can potentially benefit your credit score — and overall financial health.

While this is definitely good news, it will not eliminate medical debt that you currently have nor will it remove all medical debt on your credit reports. If you have questions and/or need help navigating medical collections email me at at or call us at (800) 822-7120. We can save you up to 50% on the amount that was owed and stop all the harassing phone calls.

-Erik Kaplan

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