Fighting Medical Debt in Montana
I got a medical bill I can't afford — here's what Montana law says and what to do next.
Statute: Mont. Code § 30-14-103 et seq. (Montana Consumer Protection Act — Unfair Trade Practices)
Deadline: 120 days
Penalty: violations of Montana's Consumer Protection Act may result in actual damages, civil penalties up to $10,000, and attorney fees
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 Montana differs from federal law
Montana provides meaningful protections for individuals with medical debt:
- Homestead exemption (MCA § 70-32-104): Montana's $250,000 homestead exemption protects your primary residence from medical debt judgments, shielding significant home equity from creditors.
- Wage garnishment limits: Montana limits wage garnishment to 25% of disposable earnings or the amount exceeding 30x the federal minimum wage, whichever is less. Medical creditors cannot take more than this amount.
- Statute of limitations: The statute of limitations on medical debt (written contracts) in Montana is 5 years (MCA § 27-2-202). After 5 years, creditors cannot sue to collect.
- Hospital financial assistance: Montana hospitals, particularly nonprofit facilities, may offer charity care programs and financial assistance for uninsured and underinsured patients. Federal 501(c)(3) requirements apply to nonprofit hospitals.
- Medicaid expansion: Montana expanded Medicaid under the ACA in 2015 (HELP Act), providing coverage to adults earning up to 138% of the federal poverty level. This significantly reduced medical debt exposure for low-income Montanans.
- No Surprises Act: The federal No Surprises Act protects Montana patients from surprise out-of-network billing for emergency services and at in-network facilities.
Additional steps in Montana
Request an itemized bill and dispute any errors in writing. Ask about charity care or financial assistance programs. File complaints with the Montana Attorney General at (406) 444-4500. For free legal help, contact Montana Legal Services Association at (406) 442-9830 or mtlsa.org.
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 Montana, 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 Montana.