Cities Benefiting Most & Least From Medical-Debt Credit Report Changes

Adam McCann, Financial WriterJul 6, 2022

Adam McCann, Financial Writer
Jul 6, 2022

The United States is known for its expensive healthcare costs, even for people who have insurance. In total, Americans owe at least $195 billion in medical debt. Medical debt can become even more burdensome when a person defaults on it, as this information is reported to the credit bureaus and hurts the debtor’s credit score.

The good news is that the three major credit bureaus – Equifax, Experian and TransUnion – recently announced three major changes to how medical debt is reported.

From July 1 onward, all medical debt in collections that was eventually paid off will be removed from people’s credit report history.
From July 1 onward, new unpaid medical debts will not appear on credit reports for a full year to give people time to pay them off without hurting their score.
Starting in the first half of 2023, medical debts of $500 or less will no longer appear on credit reports.

Together, these measures are expected to remove nearly 70% of medical collection debt tradelines from consumer credit reports. Cities where many people have small, new or recently-paid-off medical debts stand to gain the most from the changes. WalletHub compared 182 U.S. cities across four key metrics based on TransUnion data in order to determine where people will receive the most credit-report relief.

Table of Contents

Main Findings

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Cities Benefiting Most From Medical-Debt Credit Report Changes

Overall Rank	City	Total Score	% Of People Who Have Medical Collections Debt	% Of People With Medical Collections Accounts That Have a Starting Balance Below $500	% Of People Who Have at Least One Paid off Medical Collections Tradeline	% Of People With Medical Debt Less Than 1 Year Old
1	Norfolk, VA	100.00	1	1	1	1
2	Newport News, VA	99.41	2	1	1	1
3	Gulfport, MS	87.32	4	4	23	1
4	Huntington, WV	85.14	3	1	21	16
5	Amarillo, TX	84.07	6	17	1	24
6	Casper, WY	82.98	28	6	1	20
7	Columbia, SC	81.46	19	14	16	1
8	Chesapeake, VA	81.38	30	8	1	23
9	Columbus, GA	77.72	5	11	48	1
10	Virginia Beach, VA	77.27	39	15	1	28
11	Augusta, GA	76.93	7	5	66	1
12	West Valley City, UT	76.74	15	12	1	42
13	Lubbock, TX	73.75	18	10	32	14
14	Toledo, OH	73.33	27	23	17	17
15	Oklahoma City, OK	72.66	10	13	31	21
16	Charlotte, NC	72.57	32	26	34	1
17	Shreveport, LA	71.13	8	9	42	26
18	Chattanooga, TN	70.12	16	25	46	11
19	Dover, DE	70.05	26	22	26	19
20	Huntsville, AL	68.78	31	18	37	13
21	Nampa, ID	68.45	61	27	1	43
22	Rutland, VT	68.29	90	61	13	12
23	Billings, MT	66.85	84	31	1	39
24	Charleston, WV	66.45	11	7	38	36
25	Wichita, KS	65.07	29	29	19	41
26	Milwaukee, WI	64.52	13	16	74	22
27	Fort Wayne, IN	64.08	63	44	1	45
28	Montgomery, AL	63.62	14	28	162	1
29	Jackson, MS	63.39	24	35	95	10
30	Reno, NV	63.21	36	43	24	29
31	Indianapolis, IN	62.67	22	20	40	31
32	Birmingham, AL	61.61	21	33	82	15
33	Jacksonville, FL	61.29	20	32	87	18
34	Greensboro, NC	60.95	40	41	94	1
35	Laredo, TX	59.15	9	24	150	25
36	Knoxville, TN	58.95	46	38	27	34
37	San Antonio, TX	58.69	35	36	47	30
38	Louisville, KY	57.66	25	19	88	33
39	Corpus Christi, TX	57.42	12	37	57	37
40	Winston-Salem, NC	56.57	38	21	41	50
41	Boise, ID	53.87	111	71	1	62
42	Salt Lake City, UT	53.85	60	49	15	75
43	Tulsa, OK	52.33	56	74	28	35
44	Mobile, AL	52.14	23	47	137	27
45	Newark, NJ	51.90	17	30	147	40
46	Portland, ME	51.71	75	52	20	61
47	Baton Rouge, LA	51.55	37	34	69	52
48	Little Rock, AR	51.53	55	62	22	63
49	Missoula, MT	50.67	110	67	1	105
50	Cheyenne, WY	49.88	94	78	18	48
51	St. Louis, MO	49.78	45	40	59	47
52	Fort Smith, AR	48.48	54	57	39	59
53	Memphis, TN	47.74	33	60	139	32
54	Charleston, SC	47.29	62	51	35	73
55	Aurora, IL	47.19	41	46	85	53
56	Richmond, VA	46.68	51	55	30	94
57	Kansas City, MO	45.75	47	48	73	60
58	Detroit, MI	44.91	49	53	56	66
59	Wilmington, DE	44.44	52	50	36	131
60	North Las Vegas, NV	44.36	34	42	97	72
61	Albuquerque, NM	44.15	79	58	25	124
62	Akron, OH	43.85	50	39	76	78
63	St. Petersburg, FL	43.52	42	63	102	49
64	Anchorage, AK	43.51	85	73	14	152
65	Lewiston, ME	43.22	88	64	33	82
66	Baltimore, MD	42.98	67	59	50	68
67	Columbus, OH	42.75	48	45	77	84
68	Grand Rapids, MI	42.36	74	56	53	67
69	Orlando, FL	41.78	44	68	112	54
70	Austin, TX	40.90	70	69	51	70
71	Springfield, MO	40.82	81	65	78	56
72	Glendale, AZ	40.11	58	70	63	76
73	Tacoma, WA	39.47	73	88	84	46
74	Las Vegas, NV	39.40	43	54	114	87
75	Raleigh, NC	39.04	80	75	92	51
76	Tampa, FL	37.77	57	82	119	57
77	Port St. Lucie, FL	37.16	64	72	79	86
78	Colorado Springs, CO	36.82	112	99	29	92
79	Cincinnati, OH	36.74	76	80	75	71
80	Fresno, CA	35.97	106	97	43	80
81	Fort Worth, TX	35.86	59	81	99	77
82	Phoenix, AZ	35.77	71	84	68	89
83	Aurora, CO	35.50	101	86	55	79
84	Denver, CO	35.03	97	87	65	74
85	Lexington-Fayette, KY	34.67	78	66	144	69
86	El Paso, TX	34.64	68	94	110	64
87	Fort Lauderdale, FL	34.45	53	85	128	85
88	New Orleans, LA	34.21	65	83	83	99
89	Mesa, AZ	34.21	77	79	61	121
90	Grand Prairie, TX	34.19	66	76	93	95
91	Atlanta, GA	33.07	103	110	103	44
92	Fayetteville, NC	32.91	92	96	133	55
93	Chandler, AZ	32.89	93	101	49	109
94	Durham, NC	32.78	105	98	164	38
95	Peoria, AZ	32.27	102	95	52	102
96	Henderson, NV	32.26	72	77	115	98
97	Arlington, TX	32.01	69	89	100	101
98	Las Cruces, NM	31.65	86	90	80	111
99	Brownsville, TX	31.11	82	123	113	58
100	Tucson, AZ	30.78	96	91	108	83
101	Tempe, AZ	30.56	95	100	64	116
102	Garland, TX	30.53	87	93	109	93
103	Gilbert, AZ	29.75	113	107	44	119
104	Nashville, TN	29.63	83	109	91	96
105	Chicago, IL	29.62	89	92	124	88
106	Bakersfield, CA	29.46	99	103	62	125
107	Bridgeport, CT	28.22	0	114	60	91
108	Houston, TX	28.17	91	112	149	65
109	Cedar Rapids, IA	26.55	117	106	67	112
110	Spokane, WA	26.02	124	125	45	126
111	Columbia, MD	25.03	120	105	58	154
112	Irving, TX	24.91	107	102	127	115
113	Dallas, TX	24.52	104	108	131	106
114	Buffalo, NY	24.44	116	118	121	81
115	Overland Park, KS	23.64	129	124	72	100
116	Des Moines, IA	23.34	121	121	104	90
117	Tallahassee, FL	22.92	109	111	138	114
118	Oxnard, CA	22.66	125	120	86	117
119	Cleveland, OH	22.09	100	104	173	127
120	Miami, FL	21.81	108	113	153	123
121	San Bernardino, CA	21.69	119	115	98	133
122	Pembroke Pines, FL	21.59	115	119	135	108
123	Hialeah, FL	20.78	98	117	171	122
124	Jersey City, NJ	19.65	123	116	161	104
125	Vancouver, WA	19.62	140	139	70	130
126	Worcester, MA	19.47	148	135	90	110
127	Salem, OR	19.19	153	134	54	145
128	Pittsburgh, PA	18.69	138	128	129	97
129	Manchester, NH	18.28	122	122	136	134
130	Philadelphia, PA	17.84	127	126	142	120
131	Scottsdale, AZ	17.42	142	127	81	157
132	Madison, WI	17.23	149	154	96	107
133	Cape Coral, FL	17.00	134	130	145	113
134	Moreno Valley, CA	16.95	126	136	126	132
135	Nashua, NH	16.77	132	131	117	136
136	Plano, TX	16.70	130	129	106	147
137	Yonkers, NY	16.10	118	141	181	103
138	Oceanside, CA	15.56	128	132	146	135
139	Juneau, AK	15.54	141	133	111	149
140	Long Beach, CA	14.66	135	143	158	129
141	Omaha, NE	14.54	137	140	105	163
142	New Haven, CT	14.46	154	150	116	128
143	Huntington Beach, CA	14.32	144	142	122	141
144	Modesto, CA	14.15	131	137	160	137
145	Fargo, ND	14.09	163	148	71	168
146	Fontana, CA	14.00	147	147	101	156
147	Lincoln, NE	13.69	146	146	118	146
148	Santa Clarita, CA	13.11	164	159	89	140
149	Stockton, CA	13.08	133	149	143	153
150	San Diego, CA	12.43	139	144	163	138
151	Chula Vista, CA	12.36	136	138	172	143
152	Riverside, CA	11.71	150	153	151	139
153	Washington, DC	11.38	143	145	132	179
154	Santa Ana, CA	11.31	145	155	157	148
155	Seattle, WA	11.15	156	152	125	164
156	Anaheim, CA	11.12	151	151	154	150
157	Ontario, CA	10.29	157	157	141	151
158	Sioux Falls, SD	9.98	165	168	155	118
159	Los Angeles, CA	9.16	159	160	148	160
160	Sacramento, CA	8.69	152	158	168	165
161	Irvine, CA	8.49	161	162	140	166
162	Rancho Cucamonga, CA	8.46	162	161	134	172
163	Oakland, CA	7.83	160	164	169	159
164	Santa Rosa, CA	7.28	158	156	175	171
165	Garden Grove, CA	7.18	166	165	165	155
166	Providence, RI	6.85	155	163	167	180
167	Portland, OR	6.59	169	166	130	178
168	Rapid City, SD	6.34	171	172	123	175
169	Burlington, VT	6.23	180	175	120	162
170	Rochester, NY	6.11	177	173	107	182
171	Bismarck, ND	5.83	167	170	166	158
172	Honolulu, HI	5.74	168	167	180	142
173	Pearl City, HI	5.30	170	169	177	144
174	Glendale, CA	4.99	172	171	156	170
175	Warwick, RI	3.99	175	174	159	173
176	Boston, MA	2.95	182	181	152	174
177	San Jose, CA	2.42	174	176	176	177
178	Fremont, CA	2.27	176	182	170	176
179	Minneapolis, MN	2.20	181	180	179	161
180	San Francisco, CA	2.17	173	177	174	181
181	St. Paul, MN	1.97	179	179	178	167
182	New York, NY	1.47	178	178	182	169

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the best conditions for each metric.

% Of People Who Have Medical Collections Debt

Highest

Highest
1. Norfolk, VA
2. Newport News, VA
3. Huntington, VA
4. Gulfport, MS
5. Columbus, GA

Lowest

Lowest
178. New York, NY
179. St. Paul, MN
180. Burlington, VT
181. Minneapolis, MN
182. Boston, MA

% Of People with Medical Collections Accounts That Have a Starting Balance below $500

Highest

Highest
T-1. Norfolk, VA
T-1. Newport News, VA
T-1. Huntington, WV
4. Gulfport, MS
5. Augusta, GA

Lowest

Lowest
178. New York, NY
179. St. Paul, MN
180. Minneapolis, MN
181. Boston, MA
182. Fremont, CA

% Of People Who Have at Least One Paid Off Medical Collections Tradeline

Lowest

Lowest
T-1. Billings, MT
T-1. Casper, WY
T-1. Nampa, ID
T-1. Newport News, VA
T-1. Missoula, MT

Highest

Highest
178. St. Paul, MN
179. Minneapolis, MN
180. Honolulu, HI
181. Yonkers, NY
182. New York, NY

% Of People with Medical Debt Less Than 1 Year Old

Best

Best
T-1. Gulfport, MS
T-1. Charlotte, NC
T-1. Newport News, VA
T-1. Augusta, GA
T-1. Columbia, SC

Worst

Worst
178. Portland, OR
179. Washington, DC
180. Providence, RI
181. San Francisco, CA
182. Rochester, NY

Methodology

In order to determine where people are benefiting the most and least from the new medical-debt credit report changes, WalletHub compared 182 U.S. cities based on TransUnion data. For our sample, we considered only the city proper in each case, excluding cities in the surrounding metro area.

First, we compiled four relevant metrics, which are listed below with their corresponding weights. Each metric was given a value between 0 and 100, wherein 100 is the best value for that metric and 0 is the worst.

We then calculated the overall score for each city and finally ranked them using the weighted average across all metrics.

% Of People Who Have Medical Collections Debt: Full Weight (~25.00 Points)
% Of People With Medical Collections Accounts That Have a Starting Balance Below $500: Full Weight (~25.00 Points)
% Of People Who Have at Least One Paid off Medical Collections Tradeline: Full Weight (~25.00 Points)
% Of People With Medical Debt Less Than 1 Year Old: Full Weight (~25.00 Points)

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