What To Do
What To Do If Your Medical Bill Is in Collections
If your medical bill is in collections, you still have options. You can negotiate, dispute, and protect your credit.
Updated August 17, 2026 · 7 min read
Quick answer
If your medical bill is in collections, verify the debt is yours and the amount is correct. You can negotiate a settlement for less than the full amount, dispute the debt if it is incorrect, and request that the collector validate the debt. Get any settlement in writing before paying.
Validate the Debt
When a collections agency contacts you, they are required to send a written validation notice within 5 days of first contact. This notice must include the amount of the debt, the name of the original creditor, and your right to dispute. If you did not receive this, request it in writing.
Verify the Amount
Do not assume the collections amount is correct. Request documentation showing the original bill, the EOB, and how the amount was calculated. Collections agencies sometimes add fees or interest that may not be legitimate.
Negotiate a Settlement
Collections agencies typically accept 30% to 60% of the original debt as settlement. You can often negotiate a lower amount if you can pay a lump sum. Start by offering 25% to 30% and negotiate up from there.
Get Everything in Writing
Before paying anything, get the settlement agreement in writing. The agreement should state the amount you will pay, that the payment settles the debt in full, and that the collections agency will report the debt as paid or settled to credit bureaus.
Frequently asked questions
Does medical debt affect my credit?
Medical debt under $500 is not reported on credit reports. Larger amounts are not reported until one year in collections. Paid medical debt is removed from credit reports.
Can a collections agency sue me?
Yes, but it is uncommon for smaller amounts. If you are sued, respond to the lawsuit and present any defenses (incorrect amount, debt not yours, statute of limitations).
How long can a medical debt stay in collections?
The statute of limitations for medical debt varies by state, typically 3 to 6 years. After that, the debt is time-barred and cannot be legally enforced.
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