Fighting Medical Debt in Illinois
I got a medical bill I can't afford — here's what Illinois law says and what to do next.
Statute: 210 ILCS 88/ (Illinois Surprise Billing Protection Act); 215 ILCS 5/356z.3a (Balance Billing Protections)
Deadline: 120 days
Penalty: Illinois has a dedicated Surprise Billing Protection Act with an arbitration process. Illinois also restricts medical debt credit reporting and requires healthcare facilities to screen patients for financial assistance
What is fighting medical debt?
Medical debt is the leading cause of bankruptcy in the United States, affecting an estimated 100 million Americans. Recent federal actions have significantly strengthened your rights when dealing with medical debt — including new rules removing most medical debt from credit reports and protections against surprise billing.
The No Surprises Act (effective January 2022) protects you from unexpected bills when you receive emergency care or are treated by an out-of-network provider at an in-network facility without your consent. Additionally, the three major credit bureaus voluntarily removed medical debt under $500 from credit reports in 2023, and the CFPB finalized a rule in January 2025 to remove all medical debt from credit reports, but a federal court vacated that rule in July 2025 (Cornerstone Credit Union League v. CFPB) before it took effect.
What to Do If You Get a Medical Bill You Can't Afford
Step 1: Request an itemized bill. Medical billing errors are extremely common — studies suggest up to 80% of medical bills contain errors. Compare the itemized bill against your insurance Explanation of Benefits (EOB).
Step 2: If you received a surprise bill (out-of-network charges you didn't consent to), file a complaint under the No Surprises Act. Contact your insurer, the provider, and CMS at 1-800-985-3059. You should only owe your in-network cost-sharing amount.
Step 3: Ask the hospital about financial assistance. If the hospital is a nonprofit (most are), they must have a financial assistance policy. Request the application — you may qualify for free or reduced-cost care even with insurance.
Step 4: Negotiate the bill. Hospitals regularly accept less than the full amount. Ask for a reduction, a payment plan with no interest, or offer a lump-sum settlement for a lower amount. Get any agreement in writing.
Step 5: If the debt goes to collections, know your FDCPA rights. Request debt validation in writing within 30 days. Medical debt collectors must follow the same rules as any other debt collector. If the debt is on your credit report, check whether it qualifies for removal under the new credit reporting rules.
How Illinois differs from federal law
Illinois has strong medical debt protections including mandatory hospital discounts and collection restrictions:
- Hospital Uninsured Patient Discount Act (210 ILCS 89): Requires hospitals to provide discounts to uninsured patients with family income at or below 600% of the federal poverty level. Discounts must be at least equal to the best discount given to insured patients.
- Illinois Medical Debt Relief Act: Limits aggressive collection practices for medical debt. Hospitals must screen patients for financial assistance eligibility before pursuing collections and must inform patients of available programs.
- Wage garnishment protections: Illinois protects the greater of 85% of gross wages or 45 times the federal minimum wage from garnishment (735 ILCS 5/12-803). These limits are more protective than the federal standard and apply to medical debt collection.
- Hospital financial assistance requirements: Illinois hospitals must maintain written financial assistance policies, post them publicly, and provide individual notice to patients. Hospitals cannot deny emergency care based on ability to pay.
- No liens on primary residence: Illinois restricts hospitals from placing liens on a patient's primary residence for unpaid medical bills.
Additional steps in Illinois
Ask the hospital's billing department about financial assistance programs before paying. Request an itemized bill and review it for errors. File complaints with the Illinois Attorney General at (800) 386-5438. Contact Legal Aid Chicago at (312) 341-1070 for free help with medical debt. Contact the Illinois Department of Public Health for hospital compliance issues.
What you should NOT do
Don't pay a bill you haven't verified. Always request an itemized bill and compare it to your insurance EOB before paying. Errors are extremely common.
Don't put medical debt on a credit card. Medical debt has special protections (lower interest, financial assistance eligibility, credit reporting limits) that you lose once you transfer it to a credit card.
Don't ignore the bill entirely. While medical debt protections are expanding, ignoring bills can lead to lawsuits, wage garnishment, and damage to your credit that could have been avoided through negotiation or financial assistance.
Don't assume you don't qualify for financial assistance. Income thresholds for hospital charity care programs are often surprisingly high (200-400% of the federal poverty level). Apply even if you think your income is too high.
You shouldn't have to hire a lawyer to assert your rights.
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Generate your medical bill dispute →This page is general legal information for Illinois, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Illinois.