RitezyNew York legal help
Ask for free

Debt & collections · Question

Medical debt in New York: time limits, credit reports, hospital aid and what can't be taken

Updated By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

New York gives medical debt extra protection. A hospital or licensed health care provider must sue within three years of treatment. Credit bureaus may not report medical debt on New York consumers' credit reports. If a hospital or provider gets a judgment, it can't garnish your wages or place a lien on your primary home for that debt. And hospitals must offer financial aid: patients with incomes below 400% of the federal poverty level can apply for reduced bills at any time, even while the bill is in collection, and hospitals can't sue them.

Read on for the details, the exceptions and the sources.

In plain words

Medical debt
Money owed for health care — a hospital stay, an emergency room visit, a doctor's or lab bill.
Financial assistance (charity care)
A hospital program that reduces or wipes out bills for patients who can't afford them.
Federal poverty level
An income figure, set each year by the federal government and based on household size, that programs use to decide who qualifies.
Income execution
New York's name for wage garnishment.

The full answer

Time limit: an action on a medical debt by a hospital licensed under the Public Health Law, or by a health care professional licensed under the Education Law, must be commenced within three years of treatment (CPLR § 213-d). Note that the clock starts on the date of treatment, not the date of the bill.

Collection limits after a judgment: no income execution (wage garnishment) may be imposed on a judgment from a medical debt action brought by such a hospital or professional (CPLR § 5231(b)(iv)), and no property lien may be entered or enforced against your primary residence in such an action (CPLR § 5201(b)). These sections don't bar bank restraints, but exempt money such as Social Security and 90% of recent wages stays protected.

Credit reports: a consumer reporting agency may not report or keep information about a medical debt in a New York consumer's file (General Business Law § 380-j(a)(3) and (f)).

Hospital financial aid: every general hospital must have a financial assistance policy (Public Health Law § 2807-k(9-a)). Patients with incomes below 400% of the federal poverty level are presumed eligible. Below 200%, the hospital must waive all charges; between 200% and 400%, charges are capped on a sliding scale tied to Medicaid rates or, for underinsured patients, to their insurance cost-sharing. Immigration status can't be used to deny aid. You may apply at any time during the collection process, and once you submit a complete application you may disregard bills until the hospital decides, which it must do within 30 days of a completed application.

Hospital collection rules under the same law: the hospital must notify you at least 30 days before sending a debt to collection, must not send it to collection while a completed aid application is pending, may not sue patients with incomes below 400% of the poverty level, may not force the sale or foreclosure of your primary home, and may not sell your debt except to a buyer that explicitly buys it to relieve you of it. A collection agency needs the hospital's written consent to sue. Payment plans under the policy can't exceed 5% of your gross monthly income, with interest of no more than 2%.

Exceptions and special cases

  • Who the rules cover: § 213-d, § 5231(b)(iv) and § 5201(b) are written for actions by licensed hospitals and licensed health care professionals. If a debt buyer or another business is the one suing, how these sections apply may be disputed — get advice.
  • The financial aid and hospital collection rules in Public Health Law § 2807-k(9-a) apply to general hospitals. Bills from private practices, labs and other providers follow other rules, though many have their own discount programs worth asking about.
  • Medical bills charged to a credit card or a medical credit card generally become credit card debt, and the consumer credit rules, including the three-year limit in CPLR § 214-i, may apply instead.
  • If you have insurance, a bill may be wrong because a claim was never filed or was denied — check your insurer's explanation of benefits before paying.
  • Third-party collectors trying to collect a medical bill must follow the federal Fair Debt Collection Practices Act, including validation and dispute rights.

What to do now

  1. Ask for an itemized bill

    Request a line-by-line bill and your insurer's explanation of benefits. Look for duplicate charges, services you didn't receive, and claims that were never sent to insurance.

  2. Apply for hospital financial assistance

    Ask the hospital's billing office for the financial assistance application — you can apply even if the bill is already with a collection agency. Keep a copy of the completed application and proof of when you sent it.

  3. Dispute with any collector in writing

    If a collection agency contacts you, use your 30-day validation period to dispute and ask for verification, and tell the collector you have applied for financial aid.

  4. Check your credit reports

    Medical debt should not appear on a New York consumer's credit report. If it does, dispute it with the credit bureau and cite General Business Law § 380-j.

  5. If you are sued, answer on time

    Raise every defense that fits: the three-year limit from treatment (CPLR § 213-d), errors in the bill, insurance that should have paid, and — for hospital debts — your eligibility for financial aid and the bar on suing patients below 400% of the poverty level.

Calculator

Enter the date above to see the result.

Frequently asked questions

Can a hospital garnish my paycheck in New York?

Not for a judgment in a medical debt action brought by a licensed hospital or health care professional. CPLR § 5231(b)(iv) says no income execution may be imposed in those cases.

A collector says my unpaid hospital bill will hurt my credit. Is that true?

Under General Business Law § 380-j, credit bureaus may not report medical debt in a New York consumer's file. A collector that threatens credit damage it can't cause may be making a false or misleading statement.

Is it too late to apply for financial aid after the bill went to collections?

No. The hospital's policy must let you apply at any time during the collection process (Public Health Law § 2807-k(9-a)(e)).

When does the three-year clock start?

On the date of treatment (CPLR § 213-d). For a long hospital stay or a series of visits, the dates of each service can matter; our statute-of-limitations calculator helps you estimate.

Want your own situation checked?

This page is general. Describe what happened, attach the letter or document you received, and get a free first answer — then, if you want, a full check against New York and federal law and a letter ready to send.

Check my situation — free

Official sources

This page was written from the sources below. “Checked” is the date the source was last opened and read.

Related questions

Related guides

This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.