Fighting Medical Debt in New Jersey
I got a medical bill I can't afford — here's what New Jersey law says and what to do next.
Statute: N.J. Stat. § 26:2SS-1 et seq. (New Jersey Out-of-Network Consumer Protection Act)
Deadline: 120 days
Penalty: New Jersey has comprehensive out-of-network consumer protections with an arbitration process. New Jersey also restricts medical debt credit reporting
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 New Jersey differs from federal law
New Jersey has strong protections against aggressive medical debt collection and requires hospitals to help low-income patients:
- NJ Hospital Care Payment Assistance (Charity Care): All NJ acute-care hospitals must screen patients for charity care eligibility before pursuing debt collection. Patients with income below 200% of the federal poverty level receive free care. Patients between 200% and 300% FPL receive reduced-cost care on a sliding scale. Hospitals that fail to screen patients can face penalties from the NJ Department of Health.
- Medical debt collection restrictions: NJ limits aggressive debt collection practices for medical debt. Hospitals must provide patients with information about financial assistance programs and allow reasonable time to apply before sending accounts to collections.
- Statute of limitations: The statute of limitations for medical debt in New Jersey is 6 years (N.J.S.A. 2A:14-1). After 6 years, the debt is time-barred and cannot be enforced through the courts, though collectors may still attempt to collect.
- NJ Medicaid expansion: New Jersey expanded Medicaid under the ACA (NJ FamilyCare), covering adults with income up to 138% FPL. This significantly reduces uninsured medical debt for low-income residents.
- NJ Consumer Fraud Act: Deceptive or abusive medical debt collection practices may violate the NJ Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.), entitling consumers to treble damages and attorney fees.
Additional steps in New Jersey
Ask the hospital about charity care and financial assistance before paying any bill. Apply for NJ FamilyCare (Medicaid) at njfamilycare.org. Contact NJ Citizen Action at njcitizenaction.org for free medical billing advocacy. File complaints about debt collection practices with the NJ Division of Consumer Affairs at (800) 242-5846. Contact Legal Services of NJ at (888) 576-5529 for free legal help.
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 New Jersey, 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 New Jersey.