Medical Debt Calculator
Explore your options for reducing and paying off medical debt — negotiation, financial assistance, and payment plans.
Your Medical Bill
Household Info (for Financial Assistance)
Your Out-of-Pocket Bill
$7,000
Estimated after negotiation: $4,550
Payment Plan
$200/mo
14 months
Federal Poverty Level
206%
You May Qualify for Financial Assistance
Based on your income (206% of federal poverty level) and hospital type, you may qualify for charity care.
Potential savings: $4,200
Strategies to Reduce Your Bill
Apply for Hospital Financial Assistance (Charity Care)
Difficulty: Medium
Negotiate the bill directly (ask for itemized bill first)
Difficulty: Easy
Set up 0% interest payment plan (most hospitals offer)
Difficulty: Easy
Offer lump-sum settlement (30-50% of bill)
Difficulty: Medium
Check if you qualify for your insurer's hardship program
Difficulty: Medium
Credit Report Impact
Medical debt over $500 can appear on credit reports after 1 year of non-payment. Paid medical debt is removed from credit reports.
Important Tips
- Always request an itemized bill — billing errors are found in 30-80% of medical bills.
- Nonprofit hospitals are legally required to have financial assistance policies (ACA Section 501(r)).
- Medical debt doesn't appear on credit reports for 1 year — use that time to negotiate or set up a plan.
- Never put medical debt on a credit card — you lose your right to negotiate, and the interest is much higher.
- At your income level, you may qualify for Medicaid or ACA marketplace subsidies. Check healthcare.gov.
This calculator provides estimates and general guidance. Financial assistance eligibility varies by hospital. Contact the hospital's billing department directly to explore your options.
Medical Debt in America: What You Need to Know
About 100 million Americans carry medical debt, and it's the leading cause of bankruptcy filings. But here's what most people don't realize: medical bills are among the most negotiable debts in America. Hospital "chargemaster" rates are inflated 3-10x above actual costs, billing errors appear in 30-80% of bills, and hospitals — especially nonprofits — have financial assistance programs they're legally required to offer. Before you pay a medical bill in full, you have options.
Average Medical Costs (2026)
| Procedure | Average Billed | Typical Negotiated | Potential Savings |
|---|---|---|---|
| ER Visit (moderate) | $3,500 | $1,800-$2,400 | 30-50% |
| Appendectomy | $33,000 | $15,000-$22,000 | 33-55% |
| Childbirth (vaginal) | $18,000 | $8,000-$12,000 | 33-56% |
| Knee replacement | $50,000 | $25,000-$35,000 | 30-50% |
| MRI scan | $2,500 | $500-$1,200 | 50-80% |
| 3-day hospital stay | $30,000 | $15,000-$22,000 | 27-50% |
Hospital Financial Assistance (Charity Care)
Under the Affordable Care Act (Section 501(r)), all nonprofit hospitals must have a financial assistance policy (FAP) and make reasonable efforts to inform patients about it. About 58% of US hospitals are nonprofit. Eligibility is typically based on income relative to the federal poverty level:
| Income as % of FPL | Typical Assistance | 2026 Income (Family of 4) |
|---|---|---|
| Under 200% | Full write-off (100% forgiven) | Under $62,400 |
| 200-300% | 50-75% discount | $62,400-$93,600 |
| 300-400% | 25-50% discount | $93,600-$124,800 |
| Over 400% | Varies by hospital | Over $124,800 |
Medical Debt and Credit Reports (2026 Rules)
| Rule | Details |
|---|---|
| Reporting delay | Medical debt cannot appear on credit reports for 1 year |
| Paid debt | Paid medical debt is removed from credit reports |
| Small balances | Medical debt under $500 is not reported |
| VantageScore | VantageScore 4.0 excludes all medical collections |
| FICO | FICO 9+ gives less weight to medical collections |
Frequently Asked Questions
Should I negotiate my medical bill?
Yes — always. Start by requesting an itemized bill. Check each charge against fair price databases (like Healthcare Bluebook or Medicare rates). Call billing and explain your situation. Ask for the self-pay or cash discount. If the bill is large, offer a lump-sum settlement for 30-50% of the total. Hospitals would rather get paid something immediately than chase the full amount. Studies show that patients who negotiate save an average of 30-50%.
Can medical debt lead to bankruptcy?
Medical debt can be discharged in Chapter 7 bankruptcy along with other unsecured debts. However, bankruptcy should be a last resort. Before filing, exhaust other options: negotiate the bill, apply for financial assistance, set up a payment plan (most hospitals offer 0% interest), or consult a medical billing advocate. Bankruptcy stays on your credit report for 7-10 years.
What if I can't afford any payments?
If your income is low enough, you likely qualify for hospital financial assistance (charity care) that can eliminate the bill entirely. Even if you don't qualify for a full write-off, most hospitals will set up a payment plan for as little as $25-$50/month with no interest. Many states also have medical debt protection laws that limit what hospitals can charge patients below certain income levels. Never ignore a medical bill — communicate with the billing department.
See also: Debt Payoff Planner and Emergency Fund Calculator.