Medical Debt in Virginia

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Medical debt is money you owe for health care. A medical bill can become medical debt when it goes unpaid and gets sent to a debt collector or leads to a lawsuit. There are often steps you can take early, like disputing errors or applying for help, before that happens.

What is medical debt?

Medical debt can include bills from many types of health care. This could be bills from:

Hospitals
Doctors
Clinics
Urgent care centers
Emergency rooms
Therapy services (physical, mental, emotional)

This might also include prescription drugs, medical devices, dental care, vision care, orthotics, and fertility treatments.

Some services are generally not considered medical debt: cosmetic or aesthetic procedures (like elective plastic surgery or cosmetic dermatology) that health insurance won't cover under any circumstances.

A simple way to think about it: if you could at least try to submit the bill to your health insurance, even if they denied it, it is likely a medical bill. If health insurance would never cover it no matter what, it probably isn't a medical expense.

Medical debt has some legal protections that other debts — like credit card balances or personal loans — do not. That is why it is usually better to leave a medical bill as a medical bill. Paying it off with a credit card or loan may feel like a solution, but it can actually leave you with fewer options and less protection.

What can I do about medical debt?

When it comes to medical debt, Virginia has special rules that protect you.

This means: Hospitals are likely to offer financial help. In fact, many hospitals are required by law to offer financial assistance to individuals with limited income. All hospitals that have a financial assistance policy are required to make information about their charity care policies readily available to patients. Before a hospital or debt collector can take legal action against you for medical debt, they must first give you the opportunity to apply for financial assistance. This means before they can sue you, they must send you a notice. That notice gives you the chance to ask the hospital or debt collector to verify the medical debt is actually yours. It also gives you the opportunity to apply for financial assistance first.

If a collector starts a lawsuit against you or takes money from your bank or paycheck without giving you this opportunity, they may be breaking the law. Tell the judge at your court hearing that you were never given the chance to apply for financial assistance.

You might also qualify for financial assistance. Many people qualify for help with their medical bills. This includes working people, not just people with no income.

What should I do?

Your next step depends on what's happening. Pick the one that matches your situation:

My medical bill seems wrong

Get an itemized bill. This shows every charge in detail.

Check for errors. Hospitals make mistakes. You have the right to dispute wrong charges.

I can't afford to pay my medical bill

First, ask for an itemized bill. This lists every charge in detail. Check it carefully because hospitals make mistakes and insurance billing errors are common. You can compare it to your medical records to see if everything is accurate. Then, apply for financial assistance right away.

Don’t wait. If no financial assistance is available, ask about a payment plan. Push for a monthly amount you can actually afford. A lower payment is better than one you can’t keep up with.

Many people who work qualify for help. The hospital will look at your income and family size to decide if you qualify.

Also see: Dollar For, a nonprofit that has more information on applying for hospital financial assistance.

I'm getting calls from a debt collector about a medical debt

Debt collectors must follow rules.

I'm being sued for medical debt

This is serious. Don't ignore court papers.

Check if the papers are real. Figure out your deadline to respond. You might still be able to apply for financial assistance.

If you are being sued or have problems with a debt on your credit report, you can also contact a private consumer attorney. Many offer a free consultation to see if you have a case. Note: this is different from a medical malpractice or personal injury attorney. Make sure you look for a consumer law attorney.

Getting Sued for a Debt in Virginia

Money is being taken from my paycheck for medical debt

This is likely a wage garnishment. It means a court ordered your employer to send part of your pay to the hospital or debt collector. You may be able to stop it.

I have Medicaid or I think I might qualify

If you have Virginia Medicaid, you might not owe anything. The hospital should bill Medicaid first.

If you don't have Medicaid but have a low income, you might qualify. Apply for Medicaid before you apply for hospital financial assistance.

What should I do next?

Look for legal help. Free legal help may be available. Call 866-LEGLAID (866-534-5243) or visit virginialawhelp.org/get-legal-help to find a legal aid office in your area.
Hospital financial counselors. Ask the hospital for a financial counselor. They should help you apply for financial assistance for free.
Keep reading:
- Virginia Hospital and Healthcare Association (VHHA): Control Your Care — lists every major hospital system's financial assistance policy and standard charges for care
- Consumer Financial Protection Bureau (CFPB): What to do if you can't pay a medical bill
- AARP: How to pay off medical debt

Things to remember

Apply for help early. Don't wait until you're being sued or garnished. Apply for financial assistance as soon as you get the bill.
Keep all papers. Save every bill, letter, and notice you get about your medical debt. You might need them later.
Check everything carefully to make sure it’s correct. Catching small mistakes can save you thousands of dollars.
Don't ignore court papers. If you get sued, you should respond. Going to court is better than not going.
You might qualify for help. Don't assume you make too much money. Many working people qualify for financial assistance, charity care, or payment plans.
Consider bankruptcy. Medical debt is one of the top reasons why people file bankruptcy. Bankruptcy is a tool, not a moral failing. It can wipe out medical debt and give you a fresh start. A bankruptcy attorney can do a free evaluation to help you decide if it’s the right option for you. Read more about bankruptcy.