Impact of Credit Reporting Changes

As previously shared, the Credit Reporting Agencies (CRA’s) implemented significant changes related to medical debt reporting effective April 11, 2023. Medical debt will no longer appear on a consumer’s credit report unless it is more than 365 days from the delinquency date and over $500.

The impact is proving noteworthy – even if your organization doesn’t credit report. While some clients who credit report have experienced a decline of as great as 90% in the number of eligible accounts to report, perhaps the most impactful change for all providers is a change in patient perception. Anecdotally, we’ve had patients share with our team that since healthcare debts can no longer be listed on their credit report, they are no longer even due and do not need to be paid.

State’s Operations and Training teams are collaborating to create evolving scripts and providing ongoing representative training to discuss the necessity of paying medical bills even if they will not be reported to the CRA’s.

In addition to new scripting, State also is encouraging your organization to consider new patient incentives. The reality is that the “stick” of credit reporting has largely been eliminated so implementing new “carrots” is a wise approach.

Incentives could include:

  • Settlements
    Expanding blanket settlement authorization parameters or considering a greater number of under blanket offers.


  • Expanding payment plan options
    As discussed in a recent Webinar with Heather Dunn of VUMC, using AI to personalize payment plan offers increased both plan adherence and recoveries. Even as the number of patients in expanded payment plans continues to rise, the rate of adherence also rises at a faster rate.


Reach out to your State Account Executive to discuss our revised best practices in light of the new CRA guidelines. While the revenue cycle business environment has shifted yet again, State is collaborating with our provider partners to adapt and work collaboratively with patients to resolve their account.