Medical bills in Vermont: free care, credit reports and your rights
Vermont has a law that requires hospitals to give free or discounted care to people with income up to 400% of the federal poverty level (the exact level depends on the hospital and your situation).
Vermont law bans medical debt from credit reports.
Charity care means free or discounted care for people with low income. Hospitals also call it financial assistance.
Checked against official sources: October 30, 2026.
Federal rules for nonprofit hospitals apply in every state. Free help can review your bill.
Can I get my bill reduced in Vermont?
Vermont has a law that requires hospitals to give free or discounted care to people with income up to 400% of the federal poverty level (the exact level depends on the hospital and your situation).
| Income (% of poverty level) | What you get | Details |
|---|---|---|
| Up to 250% | Free care | If your household income is at or below 250% of the federal poverty level: if you are uninsured, you get a 100% discount from the amount generally billed, which means free care; if you have insurance, the facility must waive all of your out-of-pocket costs. |
| 251% to 400% | Discount | If your household income is between 250% and 400% of the federal poverty level: if you are uninsured, you get at least a 40% discount from the amount generally billed; if you have insurance, you get at least a 40% discount on your out-of-pocket costs. |
| Up to 600% | Discount | Catastrophic assistance: if your household income is at or below 600% of the federal poverty level and the facility's bills for your care are more than 20% of your household income, the facility must lower what you owe to 20% of your household income. |
These are the income levels written in the law. Each hospital decides using its own policy.
- The law
Patient Financial Assistance and Medical Debt law
Law: 18 V.S.A. chapter 221, subchapter 10; 18 V.S.A. §§ 9481-9487
- Which hospitals
All "large health care facilities": every hospital licensed in Vermont (nonprofit or for-profit), outpatient clinics and facilities affiliated with or operating under a hospital's license, and licensed ambulatory surgical centers.
- Who can get help
Vermont residents (regardless of citizenship or immigration status, including people who work or go to school in Vermont) and people living in Vermont without stable housing when they get care.
- The most you can be charged
Discounts are taken from the "amount generally billed" (the federal 501(r) look-back amount). Under catastrophic assistance, what you owe the facility is capped at 20% of your household income if your income is at or below 600% of the poverty level.
- Deadline to apply
Vermont law does not set an application deadline. Federal 501(r) rules apply to nonprofit hospitals.
Law: 18 V.S.A. §§ 9481-9487
Check your income level
Find out what percent of the federal poverty level your household income is, and compare it with the income levels in Vermont law.
Is my debt too old in Vermont?
| Kind of agreement | Time limit to sue |
|---|---|
| Written contract | 6 years |
| Open account | 6 years |
| Oral (spoken) agreement | 6 years |
Most civil lawsuits, including suits on written or oral contracts and accounts, must be filed within 6 years after the claim arises.
- What can restart the clock
The law keeps the effect of a payment of principal or interest on the time limit. A note of payment written only by the creditor is not enough proof of a payment.
- When the clock starts
When the cause of action accrues.
Law: 12 V.S.A. §§ 511, 592
A time limit to sue can differ by kind of agreement, and when it starts and what restarts it can differ; a court decides.
Can they sue me or report it in Vermont?
- Credit reports
Full ban
Credit bureaus may not report or keep information about a medical debt in your credit file. Hospitals, their clinics, ambulatory surgical centers and medical debt collectors may not report any part of a medical debt to a credit bureau.
- Waiting rules
Vermont law does not set a number of days before a bill can be sent to collections or sued on. Before seeking payment, a hospital or other large facility must check your coverage and offer you financial assistance (see screening). Every bill and every collection attempt, including by a collector, must tell you about financial assistance.
- Interest
Hospitals, other large facilities and medical debt collectors may not charge interest on medical debt owed by a patient who qualifies for the facility's financial assistance. They may not charge any patient a prepayment or early payment penalty or fee.
- Wage garnishment
If you got assistance from the Department for Children and Families or the Department of Vermont Health Access (Medicaid) in the 2 months before the hearing, your wages cannot be garnished. Otherwise you keep the greater of 75% of weekly disposable earnings or 30 times the federal minimum wage (85% or 40 times the minimum wage if the debt came from a consumer credit transaction), or more if the court finds you need it for basic expenses for you and your dependents.
- Selling the debt
Hospitals and other large health care facilities may not sell medical debt, except to a tax-exempt charity that will cancel it.
- Lawsuit rules
A medical debt over $5,000 cannot be collected in small claims court; it must be filed as a regular civil case.
Law: 18 V.S.A. §§ 9483(d), 9484, 9485; 12 V.S.A. §§ 3170, 5531(e)
Payment plans and interest in Vermont
- Hospitals must offer a payment plan
- Interest-free
- Monthly payment limit: 5% of your monthly income
If you qualify for financial assistance, the hospital, other large facility or medical debt collector must at least offer you a payment plan, and monthly payments cannot be more than 5% of your gross monthly household income. No interest may be charged on your medical debt, and no one may charge a prepayment penalty.
Law: 18 V.S.A. § 9483(d)
Surprise bills and ambulance bills in Vermont
- State law
Vermont law adopting the federal No Surprises Act
- Which plans it covers
Health insurers, hospital and medical service corporations and HMOs that sell plans in Vermont (state-regulated plans). Self-funded employer plans are regulated by federal law.
- What it adds
Vermont law requires state-regulated insurers and health care providers to follow the federal No Surprises Act, and lets the Department of Financial Regulation enforce it or refer cases to federal regulators or the Vermont Attorney General.
- Ground ambulance
No state limit listed
Vermont has no state limit on ground ambulance bills that we list here. The federal No Surprises Act generally does not cover ground ambulances either, so ask the ambulance company about financial assistance and a payment plan.
Law: 8 V.S.A. § 4012(b)
Itemized bills and price estimates in Vermont
Vermont law gives you a right to an itemized bill.
Under the Bill of Rights for Hospital Patients, you have the right to an itemized, detailed and understandable explanation of your hospital charges, no matter who pays, and to information about financial assistance and billing and collection practices. The law does not set a number of days.
Law: 18 V.S.A. § 1852(a)(12)
Health coverage and Medicaid in Vermont
Green Mountain Care (Vermont Medicaid) is Vermont's Medicaid program. Apply for it here:
Apply: Green Mountain Care (Vermont Medicaid) · 1-855-899-9600
Where to complain in Vermont
- Attorney general: Vermont Attorney General, Consumer Assistance Program · 1-800-649-2424
A hospital, clinic or surgery center did not follow the financial assistance, credit reporting or debt sale rules, or a debt collector treated you unfairly. The Attorney General enforces the financial assistance law. - Health insurance: Vermont Department of Financial Regulation, Insurance Division · 802-828-3302
Problems with a Vermont health insurance plan, including surprise bills under the No Surprises Act. - Medicaid: Green Mountain Care (Department of Vermont Health Access) · 1-855-899-9600
Questions about Medicaid eligibility or coverage.
Free help in Vermont
- Office of the Health Care Advocate (Vermont's health insurance Consumer Assistance Program, at Vermont Legal Aid) · 1-800-917-7787
- VTLawHelp.org (Vermont Legal Aid and Legal Services Vermont)
- Vermont Judiciary: Debt Collection and Small Claims self-help
- LawHelp.org
- No Surprises Help Desk (CMS) · 1-800-985-3059
Free tools, letters and checklist
Good to know in Vermont
- Vermont's financial assistance rules apply to every licensed hospital, including for-profit hospitals, and to hospital clinics and ambulatory surgical centers.
Law: 18 V.S.A. § 9481(6)
- Any waiver of your rights under Vermont's financial assistance and medical debt law is void and cannot be enforced.
Law: 18 V.S.A. § 9486
- Act 21 of 2025 gave the State Treasurer $1 million to contract with a nonprofit to buy and cancel medical debt of Vermont residents at or below 400% of the poverty level or with medical debt of at least 5% of household income.
Changes in 2024–2026
July 1, 2025: Act 21 of 2025 (S.27) barred credit bureaus from reporting or keeping medical debt, barred large health care facilities and medical debt collectors from reporting any part of a medical debt, and funded a State Treasurer medical debt relief program. September 1, 2025: Act 11 of 2025 recodified the state No Surprises Act compliance rule as 8 V.S.A. § 4012(b). May 6, 2026: Act 92 (2025 Adj. Sess.) amended the Bill of Rights for Hospital Patients.
Law: 9 V.S.A. § 2466d; 18 V.S.A. § 9485(b); 18 V.S.A. § 1852
Questions about medical bills in Vermont
Does Vermont require hospitals to give free or discounted care?
Vermont has a law that requires hospitals to give free or discounted care to people with income up to 400% of the federal poverty level (the exact level depends on the hospital and your situation).
Can medical debt be reported to credit bureaus in Vermont?
Vermont law bans medical debt from credit reports. Credit bureaus may not report or keep information about a medical debt in your credit file.
How long can a medical bill be collected or sued on in Vermont?
Most civil lawsuits, including suits on written or oral contracts and accounts, must be filed within 6 years after the claim arises.
Can a medical debt lead to wage garnishment or a lien on my home in Vermont?
If you got assistance from the Department for Children and Families or the Department of Vermont Health Access (Medicaid) in the 2 months before the hearing, your wages cannot be garnished. Otherwise you keep the greater of 75% of weekly disposable earnings or 30 times the federal minimum wage (85% or 40 times the minimum wage if the debt came from a consumer credit transaction), or more if the court finds you need it for basic expenses for you and your dependents.
Do I have a right to an itemized bill in Vermont?
Under the Bill of Rights for Hospital Patients, you have the right to an itemized, detailed and understandable explanation of your hospital charges, no matter who pays, and to information about financial assistance and billing and collection practices. The law does not set a number of days.
Can I get a payment plan for a hospital bill in Vermont?
If you qualify for financial assistance, the hospital, other large facility or medical debt collector must at least offer you a payment plan, and monthly payments cannot be more than 5% of your gross monthly household income. No interest may be charged on your medical debt, and no one may charge a prepayment penalty.
More help
Nearby states
Sources
- 18 V.S.A. §§ 9481-9487, Patient Financial Assistance and Medical Debt (Vermont General Assembly)
- Act 21 of 2025 (S.27), as enacted
- 9 V.S.A. § 2466d
- 18 V.S.A. § 1852, Bill of Rights for Hospital Patients
- 12 V.S.A. §§ 511, 592, 3170, 5531
- 8 V.S.A. § 4012 and Act 11 of 2025
- CMS: Vermont Consumer Assistance Program
- Office of the Health Care Advocate
- Vermont Attorney General, Consumer Assistance Program
- Vermont Department of Financial Regulation, file a complaint