Insurance & Medical Bills · Health coverage and bills
Medical debt protections
In this guide
- Since January 1, 2025, most medical debt cannot appear on California consumer credit reports.
- Collectors of medical debt must follow California’s Rosenthal Act and federal rules.
- Patients who may qualify for hospital assistance can still apply after a bill goes to collections.
Credit reports
California law (SB 1061) generally prohibits medical debt from being reported to consumer credit bureaus or used in credit decisions, starting January 1, 2025. Federal regulators have taken the position that federal law overrides state rules of this kind; the Attorney General’s position is that the ban remains the law in California. The Attorney General suggests that people who find medical debt on their reports contact the provider, the debt holder, and the credit bureau, and file a complaint if the problem continues.
Collection rules
Medical debt collectors must follow the same California and federal rules as other collectors, including limits on calls and a ban on harassment and false statements. See What debt collectors can and can’t do.
Hospitals face additional limits under California’s hospital fair pricing rules, including waiting periods before sending accounts to collections and restrictions on certain collection actions.
Checking the bill
People often compare the bill with their insurer’s explanation of benefits, request an itemized bill, and ask whether the hospital’s financial assistance policy applies.
Official sources for this guide
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