Tackling Medical Debt: Smart Ways to Save on Health Care Expenses

Experts offer tips to protect your budget and credit score from rising medical costs

Published on Feb. 16, 2026

Got story updates? Submit your updates here. ›

With health care costs putting new pressure on family budgets, medical debt remains one of the top reasons people consider bankruptcy. However, experts say there are ways to negotiate bills, access financial assistance programs, and save on prescription costs to manage medical debt without resorting to bankruptcy.

Why it matters

Medical debt can have a significant impact on personal finances and credit scores, leading some to consider bankruptcy. Understanding options to reduce and manage medical bills is crucial for protecting financial wellbeing.

The details

Even with insurance, many patients are paying more out-of-pocket for monthly premiums, prescriptions, and co-pays. While small medical debts under $500 no longer appear on credit reports and paid collections are removed, large bills can still strain budgets. Experts recommend starting with the provider to negotiate bills, set up payment plans, or access financial assistance programs. Confirming in-network doctors and hospitals, as well as exploring generic drug alternatives and discount programs, can also help lower costs.

  • Medical debt remains one of the top reasons people consider bankruptcy, according to Forbes.

The players

Forbes

A leading business and financial news publication.

Consumer Reports

A nonprofit consumer advocacy organization that provides reviews and advice on products and services.

Got photos? Submit your photos here. ›

The takeaway

While medical debt is common, there are proactive steps people can take to manage costs and protect their financial wellbeing, such as negotiating bills, accessing assistance programs, and exploring cost-saving options for prescriptions and in-network care.