13 Oct What to Do When Medical Bills Go to Collections

October 13, 2026 ~ A cancer diagnosis can affect many parts of your life, including your finances. Medical bills can add up quickly, and if you’re unable to pay them, they may be sent to collections.

If that’s happened to you, you’re not alone. Almost half of people diagnosed with cancer face medical debt at some point. The good news is that there are steps you can take to manage the situation and protect your financial health.

What Does It Mean for A Bill to Be “In Collections”?

If a medical bill goes unpaid for a period of time, the provider may send it to a collection agency. The collection agency then tries to collect payment from you. Sometimes, the debt is sold to a third-party company that then tries to collect payment.

Having a bill in collections can impact your credit score, which may affect your ability to get a loan, rent housing, get a cell phone or cable account, or access other financial resources. But there are steps you can take to reduce the impact.

Step 1: Make Sure the Bill Is Accurate

Before taking any action, review the bill carefully. Check for:

• Correct dates of service
• Services you actually received
• Charges that match your records

Then compare the bill to the Explanation of Benefits (EOB) you receive from your health insurance plan. This helps confirm that your insurance was billed correctly and paid what it should have.

If the EOB shows that your insurance plan paid nothing, you may have the right to appeal that decision, if you are still within the deadline to appeal. For information about appeals, visit Triage Cancer’s Health Insurance Appeals Resources.

If something doesn’t look right, contact:

• Your health care provider or the provider’s billing department
• Your health insurance company

Billing errors are more common than people expect, so it’s worth taking the time to double-check. This checklist from the Centers for Medicare and Medicaid Services can help you understand your bill.

Step 2: Contact the Collection Agency

It might feel stressful, but reaching out to the collection agency can help you understand your options.

You may be able to:

• Set up a payment plan based on your budget
• Negotiate a reduced settlement amount

Keep in mind: settling for less than the full amount may still have an impact on your credit report. Ask questions, consider all your options, and make sure you understand any agreement before committing.

Know your rights before you agree to anything:

• Ask for debt validation in writing. Federal law requires a collection agency to send you a written notice with the amount owed, the name of the creditor, and instructions for disputing the debt. You generally have 30 days from receiving that notice to dispute it in writing, and the agency must pause collection until it sends proof the debt is valid.
• Get any payment plan or settlement in writing before you pay. Ask the agency to send you the terms in a letter or email first. A verbal promise is hard to enforce if a dispute comes up later.
• Be careful about restarting the clock. Making even a small payment on an old bill can restart your state’s statute of limitations, the deadline for a collector to sue you over the balance. It is worth checking your state’s rules before paying anything on an older bill.
• You can limit how they contact you. You have the right to tell a collector, in writing, to contact you only by mail, only through an attorney, or not at all. Once they receive that letter, they generally must stop, except to confirm they are stopping or that they may sue.
• Watch for harassment, and keep a record. Collectors cannot threaten you, use abusive language, or call repeatedly to annoy you, and they generally cannot call before 8 a.m. or after 9 p.m. Keep a log of every call and letter. That record can support a complaint to the Consumer Financial Protection Bureau (consumerfinance.gov/complaint) or the Federal Trade Commission if the agency crosses a line.

If you believe that you are being billed by the collection agency in error, you can tell the agency that you are disputing the bill.

Step 3: Ask About Financial Assistance

Even if your bill is already in collections, financial help may still be available.

Options to explore:

• Hospital financial assistance (charity care) programs
• Discounts or income-based payment plans

You can contact the original health care provider to ask what programs are available.

You can also use tools like Dollar For to see if you may qualify for charity care at your hospital, to lower or eliminate the hospital bill.

Step 4: Understand How Medical Debt Affects Your Credit

There have been important changes to how medical debt is reported on credit reports:

• Medical bills typically won’t appear on your credit report until they are at least one year past due
• Paid medical debt should no longer appear on your credit report
• Medical debts under $500 are not included on credit report

Unpaid medical debt over $500 can stay on your credit report for up to seven years.

Step 5: Check Your Credit Reports

After resolving a medical bill, make sure your credit report reflects the update.

You can request free credit reports from:

• Equifax
• Experian
• TransUnion

If you see errors, you have the right to dispute them with the credit reporting agencies.

Focus on What You Can Control

Dealing with medical debt, especially during or after cancer treatment, can feel overwhelming. But taking small, informed steps can make a difference.

You don’t have to handle everything at once. Start by reviewing your bills, asking questions, and exploring available support.

Need More Help?

Triage Cancer offers free resources to help you manage medical bills and debt:

• Quick Guide to Managing Medical Bills
• Quick Guide to Managing Debt
• Keep track of your medical bills with our Medical Bill Tracker
• Financial Assistance Resources Module

If you’re looking for more guidance, Triage Cancer provides free education, tools, and support to help you make informed decisions after a cancer diagnosis.

About Triage Cancer

Triage Cancer is a national, nonprofit providing free education to people diagnosed with cancer, caregivers, and health care professionals on cancer-related legal and practical issues. Through events, materials, and resources, Triage Cancer is dedicated to helping people move beyond diagnosis.

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