Medical debt and credit reports in Vermont

Vermont law bans medical debt from credit reports.

Checked against official sources: October 30, 2026.

The rule in Vermont

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. Medical debt includes debts for health care services, dental care, equipment and prescription drugs, and medical credit cards used only for health care, but not debts charged to a general credit card or home equity line, or secured debts.

Who the rule covers: Credit bureaus (may not report or keep any medical debt in your file) and hospitals, other large health care facilities and medical debt collectors (may not report any part of a medical debt to a credit bureau).

In effect since: July 1, 2025

It covers both paid and unpaid debt.

Law: 9 V.S.A. § 2466d; 18 V.S.A. § 9485(b)

State bans and federal law

In January 2025 the CFPB issued a rule to keep most medical debt off credit reports. On July 11, 2025 a federal court in Texas vacated (cancelled) that rule at the joint request of the CFPB and the plaintiffs. The rule is not in effect.
On October 28, 2025 the CFPB published its view that the federal Fair Credit Reporting Act generally overrides (preempts) state laws that keep categories of information such as medical debt off credit reports. The CFPB also said its guidance is not binding and that courts decide these questions.
On August 10, 2026 a federal court in Texas declared that a Texas law barring credit bureaus from reporting certain out-of-network medical debt is preempted by the Fair Credit Reporting Act, and barred the state from enforcing it. That ruling is about the Texas law; laws in other states are decided case by case.

Law: Cornerstone Credit Union League v. CFPB, No. 4:25-cv-16 (E.D. Tex. July 11, 2025); CFPB; CFPB interpretive rule, Fair Credit Reporting Act; Preemption of State Laws, 90 FR 48710 (Oct. 28, 2025); Consumer Data Industry Ass'n v. Texas, No. 1:19-CV-876-RP (W.D. Tex. Aug. 10, 2026)

Other limits on collection in Vermont

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.
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)

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.

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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.

Questions about medical bills in Vermont

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.

Nearby states

National rules that apply in every state

Nonprofit hospitals (federal rules)

Each nonprofit hospital must have a written financial assistance policy (FAP).

Law: 26 U.S.C. 501(r)(4); 26 CFR 1.501(r)-4

Before any ECA, the hospital must tell you about financial assistance and wait at least 120 days from the first bill sent after you left the hospital.

Law: 26 CFR 1.501(r)-6(c)(3)

You can apply for at least 240 days from the first bill sent after you left the hospital.

Law: 26 CFR 1.501(r)-1(b)(3)

If you apply during the application period, even with an incomplete application, the hospital and its collectors must stop starting or continuing ECAs until the hospital decides, or until you fail to send requested information within a reasonable time.

Law: 26 CFR 1.501(r)-6(c)(8)

Once you are found eligible, the hospital cannot charge you more than the amounts generally billed (AGB) to people with insurance for emergency or other medically necessary care, and must charge less than its full gross charges for other covered care.

Law: 26 U.S.C. 501(r)(5); 26 CFR 1.501(r)-5

Surprise bills (No Surprises Act)

With most private health plans (job-based plans, Marketplace and other individual plans), you are protected from surprise out-of-network bills for emergency care, for non-emergency care at an in-network hospital, hospital outpatient department or ambulatory surgical center, and for air ambulance services.

Law: 42 U.S.C. 300gg-111, 300gg-131, 300gg-132, 300gg-135

For protected services, you can't be charged more than your in-network cost-sharing (copay, coinsurance, deductible).

Law: 42 U.S.C. 300gg-131, 300gg-132

Ground ambulance services are generally not covered by these federal protections, unless a state law has different rules.

Law: CMS, Know your rights when using insurance

If you don't have insurance or won't use it, providers and facilities must usually give you a written good faith estimate.

Law: 42 U.S.C. 300gg-136; 45 CFR 149.610

If one provider's or facility's bill is at least $400 more than its good faith estimate, you can use the federal patient-provider dispute resolution process.

Law: 45 CFR 149.620(a)(2)(ii), (c)(1)

Credit reports

A collection account generally cannot be reported for more than 7 years.

Law: 15 U.S.C. 1681c(a)(4), (c)(1)

For a veteran's medical debt (care authorized by the VA from a non-VA provider, or a bill the VA charged in error), nationwide credit bureaus may not report it until 1 year after the care, and may not report it once it is fully paid or settled, when they know it is a veteran's medical debt.

Law: 15 U.S.C. 1681c(a)(7), (8); 15 U.S.C. 1681a

If a medical debt on your credit report is wrong, you can dispute it with the credit bureau for free.

Law: 15 U.S.C. 1681i(a)(1)

Debt collectors

A debt collector must give you validation information about the debt, including the amount and how to dispute it.

Law: 12 CFR 1006.34

If you dispute the debt in writing within the validation period, the collector must stop collecting the disputed amount until it sends you verification of the debt.

Law: 12 CFR 1006.38(c), (d)(2)

A debt collector must not sue or threaten to sue you on a time-barred debt, meaning a debt whose statute of limitations has run out.

Law: 12 CFR 1006.26(b)

Itemized bills and price lists

Your medical and billing records kept by a health care provider are part of your 'designated record set'.

Law: 45 CFR 164.501 (designated record set); 45 CFR 164.524(b)(2)

If Medicare paid for an item or service, you can ask the provider in writing for an itemized statement.

Law: 42 U.S.C. 1395b-7(b)

Every hospital must post online a machine-readable file of all its standard charges, and a consumer-friendly list of at least 300 shoppable services (or an online price estimator tool).

Law: 45 CFR 180.40, 180.50, 180.60

Medicaid and Medicare

If you qualify for Medicaid, it can pay for covered care you got up to 3 months before the month you applied, if you were eligible then.

Law: 42 U.S.C. 1396a(a)(34), 1396d(a); Pub. L. 119-21, sec. 71112 (July 4, 2025)

If you are in the Qualified Medicare Beneficiary (QMB) program, Medicare providers may not bill you for Medicare deductibles, coinsurance or copays for Medicare-covered care.

Law: 42 U.S.C. 1396a(n)(3)(B); CMS

If your health plan denies a claim

You must file an internal appeal within 180 days (6 months) of the notice that your claim was denied.

Law: 45 CFR 147.136(b); HealthCare.gov

After a final denial, you can ask for an external review by an independent reviewer within 4 months.

Law: 45 CFR 147.136(c), (d); HealthCare.gov

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