Medical Debt and Credit Reports in 2026: Where Florida Stands as Other States Act and Preemption Fights Grow

Medical bills are rarely planned and often disputed, which is why their place on credit reports has become a policy fight. On September 21, 2026, the National Consumer Law Center (NCLC) updated its national review of the issue ¹. The headline for Florida readers is mixed: a growing list of states now limit how medical debt appears on credit reports, Florida is not on that list, and the federal rule that would have helped everyone was vacated in 2025 ¹. Florida does, however, have its own rules on how hospitals collect, and those rules matter for anyone sorting through medical debt.

Where the national picture stands

About 15 million consumers have medical debt on their credit reports, according to figures NCLC cites, and studies have found that medical debt has little or no value in predicting whether someone will repay other debts ¹. Since 2022, the three nationwide credit bureaus have voluntarily excluded medical debt that is less than one year delinquent, removed paid medical debt, and stopped reporting medical collections under $500 ¹.

NCLC counts fifteen states and the District of Columbia with laws that ban or restrict medical debt in credit reports, including California, New York, Maryland and, most recently, D.C., whose law took effect August 20, 2026 ¹. Florida is not among them ¹.

At the federal level, the Consumer Financial Protection Bureau issued a rule in January 2025 that would have barred medical debt from credit reports used for lending decisions, but a federal court in Texas vacated it in July 2025, finding it exceeded the agency’s authority ¹. The state laws now face their own challenge. In August 2026, a federal court in Texas held that the Fair Credit Reporting Act preempts a Texas law barring the reporting of surprise medical bills, while other federal appeals courts have read preemption more narrowly ¹. NCLC notes that the CFPB issued a non-binding interpretive rule in October 2025 taking the view that federal law preempts state limits, and that the question is ultimately one for the courts ¹.

Florida’s protections focus on collection, not reporting

Florida took a different route. In 2024, the Legislature passed CS/HB 7089, signed and filed on May 10, 2024, and effective July 1, 2024 ². Several provisions apply to debt for care at hospitals and other facilities licensed under chapter 395:

• A three-year statute of limitations for lawsuits to collect that medical debt, running from the date the facility refers the debt to a third party for collection ².
• Extra exemptions in a lawsuit on that debt: up to $10,000 in value in one motor vehicle, plus up to $10,000 in personal property for a debtor who does not claim the homestead exemption ².
• Limits on “extraordinary collection actions,” a term that includes selling the debt, reporting it to credit bureaus, suing, placing liens, and garnishing wages ²³.

Under the law as amended in 2025, a facility may not take those actions before it has made reasonable efforts to decide whether the patient qualifies for financial assistance, before it has provided an itemized bill, during a pending billing grievance or insurance appeal, before billing the insurer, or within 30 days after written notice that collection will begin ³. It also may not do so while the patient negotiates the bill in good faith or keeps up with a payment plan ³. The 2025 change, filed May 27, 2025, allows a facility to sell the debt during the 30-day window only under a contract that bars interest, fees and other extraordinary collection actions by the buyer ³.

Practical steps for Florida households

For anyone in South Florida carrying hospital debt, a few steps follow from these rules. Ask for an itemized bill and a financial assistance application before paying or agreeing to a plan ³. Use the facility’s grievance process if charges look wrong, since collection action is restricted while a grievance is pending ³. Check credit reports to confirm that paid debts and balances under $500 are not listed, consistent with the bureaus’ voluntary policies ¹. And note the date a debt was sent to collections, because that starts the three-year clock for a hospital debt lawsuit ².

When medical bills sit alongside credit cards, a car loan or a mortgage, the question becomes how the whole picture fits together. Medical debt is generally unsecured debt, and the exemptions and timelines above can shape the choice between negotiating, a payment plan, or a bankruptcy filing.

Anyone in South Florida weighing their options can request a confidential consultation with The Roca Law Firm, in English or Spanish.