Essential Insights Into Medical Debt Collection Policy Changes

Insights into medical debt collection policy changes in 2024

Medical debt collection policies underwent notable changes in 2023, and more shifts are expected in 2024. Let’s recap the 2023 medical debt collection policy changes and learn what to anticipate in the coming year.

A Look-Back: Medical Debt Collection Policy Changes in 2023

2023 marked a significant year for reforms in medical debt collection policies. The three major credit bureaus – Equifax, Experian, and TransUnion – implemented crucial changes. One of the key adjustments was the removal of medical debts under $500 from credit reports. This measure alone is estimated to have removed about half of the medical debts previously listed on credit reports.

Additionally, paid medical collection debts were excluded from consumer credit reports. Furthermore, the period before unpaid medical collection debts appear on a consumer’s credit report was extended from six months to one year, providing consumers more time to address their debts without immediate credit score implications.

Anticipated Medical Debt Collection Changes in 2024

Looking ahead to 2024, the Consumer Financial Protection Bureau (CFPB) is pushing for more extensive changes in medical debt reporting. Key among these proposed changes is the complete removal of medical bills from credit reports. This shift would significantly alter the current credit reporting landscape, as medical debt is not typically indicative of an individual’s financial responsibility due to its unpredictable and often exorbitant nature.

The CFPB’s proposals also aim to prevent the use of medical collection information in evaluating creditworthiness, which would have a profound impact on loan applications and other financial assessments.

State-Level Initiatives

Some states are already leading the charge with their initiatives. Colorado and New York, for example, have taken steps to remove all medical debt from credit reports, setting a potential precedent for national policies.

The Broader Impact

These changes reflect a growing recognition of the unique challenges posed by medical debt. Unlike other types of debt, medical debt is often incurred unexpectedly and can be overwhelming. The 2023 reforms have already improved the credit scores of many individuals, enhancing their access to loans, housing, and employment opportunities.

However, the complexity of the issue remains. Hospitals and healthcare providers can still pursue legal avenues for unpaid bills, and the reduction in reporting may lead to unintended consequences like upfront payment demands.

The medical debt collection policy changes in 2023 have provided much-needed relief to millions of Americans, however, they have clouded our industry and make compliance more complicated. As we move into 2024, it’s crucial to stay informed about further proposed reforms that could reshape the medical debt collection landscape even more profoundly.

With predicted changes coming to the medical debt collection industry, it’s more important than ever to ensure that your organization’s strategy and methodology are compliant with changes from last year and changes to come. At TEC Services Group, our HealthCareTEC division focuses on focuses on providing hospitals, back-office support companies, and affiliated healthcare organizations with both High Tech and Human Touch to ensure your systems are integrated and run with maximum efficiency. As a dedicated business unit of TEC Services Group, and as leaders in the healthcare information technology industry, we are excited to be an extension of our clients’ IT teams.


Sedric is an innovative technology that is being deployed at the highest levels of our industry. When combined with leading omnichannel systems, Sedric can deliver real-time compliance management, voice analytics, and reporting on all forms of communication to guarantee your agency is doing everything possible to deliver amazing customer experiences.


Intelligent Contacts is one of the leading omnichannel solutions in the market today. By combining customer payment opportunities in line with your dialer and telephony platforms, they are changing the game when it comes to effective and efficient consumer engagement.


As a premier solution for enterprise organizations, C&R’s Debt Manager platform is designed to provide the most flexible and compliant solution on the market. Debt Manager is used by the world’s largest banks and governments, along with some of the ARM industry’s largest collection companies.


Latitude by Genesys is one of the leading technologies for mid-market and enterprise companies. With a long history in both first-party agency management and third-party collections, Latitude’s functionality is built for the end user. Administrative tasks become easy while remaining flexible for your changing business operations.

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