Medical debt and credit reports in Texas
Texas law limits when some medical debt can be reported to credit bureaus.
A credit bureau may not include a medical collection account in your credit report if you had health coverage when you got care and the bill is the balance (after copays, deductibles and coinsurance) owed to an emergency care provider or a facility-based provider for an out-of-network claim.
Checked against official sources: October 30, 2026.
The rule in Texas
Partial limit
A credit bureau may not include a medical collection account in your credit report if you had health coverage when you got care and the bill is the balance (after copays, deductibles and coinsurance) owed to an emergency care provider or a facility-based provider for an out-of-network claim. This does not apply to reports for credit of $150,000 or more, life insurance of $150,000 or more, or a job paying $75,000 a year or more. Separately, a hospital, surgery center, birthing center or freestanding emergency room that violates the state billing-policy law may not report you to a credit bureau.
Who the rule covers: Credit bureaus (consumer reporting agencies). A separate rule bars hospitals, surgery centers, birthing centers and freestanding emergency rooms that break state billing-policy rules from reporting you.
In effect since: May 31, 2019
Law: Tex. Bus. & Com. Code 20.05(a)(5), (b); Tex. Health & Safety Code 324.101(g)
Other limits on collection in Texas
- Waiting rules
A health care provider, including a hospital, may not pursue debt collection against you until it has sent you a written itemized bill that meets state rules. A provider must bill you by the first day of the 11th month after the date of service (if it bills your health plan directly, it must bill the plan by that date or the date in its contract). If it bills late, it cannot collect from you amounts your health plan would have paid or that you would not have owed if it had billed on time. A hospital, surgery center, birthing center or freestanding emergency room that violates the state billing-policy law may not take or help take third-party collection action, report you to a credit bureau or sue you.
- Liens on your home
The Texas Constitution protects your homestead from forced sale for the payment of most debts, including medical bills. A hospital may have a lien on your claim or lawsuit against someone who caused an accident that injured you (not on your home), if you were admitted within 72 hours after the accident.
- Wage garnishment
Current wages cannot be garnished for medical bills. The Texas Constitution allows garnishment of current wages only for court-ordered child support and spousal maintenance (federal debts such as taxes follow federal law).
Law: Tex. Health & Safety Code 185.002(e), 324.101(a)(4), (g); Tex. Civ. Prac. & Rem. Code 146.002, 146.003; Tex. Fin. Code 302.002; Tex. Const. art. XVI, secs. 28, 50; Tex. Prop. Code 55.002
Is my debt too old in Texas?
| Kind of agreement | Time limit to sue |
|---|---|
| Written contract | 4 years |
| Open account | 4 years |
A lawsuit on a debt must be filed within 4 years after the claim accrues. A lawsuit on an open or stated account must also be filed within 4 years. If no other period applies, the time limit is 4 years.
- What can restart the clock
A statement acknowledging an old debt can be used to get around the time limit only if it is in writing and signed by you. A debt buyer (a company that bought the debt) may not sue or start arbitration after the 4-year limit, and a payment, a promise to pay or any other activity on the debt does not revive its right to sue.
- When the clock starts
For an open or stated account, the time starts on the day the dealings between you and the creditor end.
Law: Tex. Civ. Prac. & Rem. Code 16.004(a)(3), (c); Tex. Civ. Prac. & Rem. Code 16.051; Tex. Civ. Prac. & Rem. Code 16.065; Tex. Fin. Code 392.307(c), (d)
A time limit to sue can differ by kind of agreement, and when it starts and what restarts it can differ; a court decides.
Where to complain in Texas
- Health insurance: Texas Department of Insurance · 1-800-252-3439
A state-regulated health plan denied a claim, or you got a surprise bill or out-of-network ambulance bill the state law protects you from. - Hospital licensing: Texas Health and Human Services Commission, Health Care Facilities Regulation (complaint hotline) · 1-800-458-9858
A hospital or other licensed facility did not follow state billing rules, such as the itemized bill rules. - Attorney general: Texas Attorney General, Consumer Protection Division
A debt collector or business used unfair or deceptive practices.
Questions about medical bills in Texas
Can medical debt be reported to credit bureaus in Texas?
Texas law limits when some medical debt can be reported to credit bureaus. A credit bureau may not include a medical collection account in your credit report if you had health coverage when you got care and the bill is the balance (after copays, deductibles and coinsurance) owed to an emergency care provider or a facility-based provider for an out-of-network claim.
How long can a medical bill be collected or sued on in Texas?
A lawsuit on a debt must be filed within 4 years after the claim accrues. A lawsuit on an open or stated account must also be filed within 4 years.