2024 Medical Licensing Costs: Complete Guide to Exam, Application, and Renewal Fees in the USA

The costs of medical licensing can vary widely, depending on where you’re practicing and your specific role in healthcare. From exam fees to renewal costs, each step in the licensing process comes with its price tag, and planning for these costs can save you a lot of stress down the road.

In this guide, we’ll provide you with everything you need to know about medical licensing costs. As you read, you’ll discover:

• The examination costs for different exams
• The application costs
• Interstate Medical Licensure Compact (IMLC)
• The renewal costs
• The hidden costs of medical licensing
• The timeline for obtaining a license
• The cost comparison across states
• The special considerations
• The impact of medical licensing services
• The tips for managing licensing costs
• The future trends in medical licensing

Let’s get right in.

Examination costs

The first major expense for anyone pursuing a career in medicine is the cost of licensing exams. 

Whether you’re aiming to become a doctor, nurse, or physician assistant, there are specific exams required to demonstrate your competency. Let’s take a look at what these exams cost.

1. United States Medical Licensing Examination (USMLE)

The USMLE is required for anyone pursuing an MD (Doctor of Medicine). It consists of three steps, each with its own set of fees.

1. Step 1 and Step 2 CK Fees: Step 1 and Step 2 Clinical Knowledge (CK) each cost around $670. These exams assess your basic medical knowledge and clinical skills. 
2. Step 3 Fees: The final exam, Step 3, costs $895. This exam evaluates your ability to apply medical knowledge in a real-world setting.
3. Additional Fees: You may also encounter extra fees if you need to extend your eligibility period or change your test location. These can range from $70 to $100.

2. USMLE Fees for International Medical Graduates (IMGs)

For those who completed their medical education outside the United States, the process involves a few additional steps and costs.

1. ECFMG Certification: International Medical Graduates must first get certified by the Educational Commission for Foreign Medical Graduates (ECFMG). This certification costs $160 and is a prerequisite for taking the USMLE.
2. International Test Delivery Surcharges: If you’re taking the USMLE outside the U.S., you’ll need to pay extra for international testing, which can add up to $1000 per exam.

3. Comprehensive Osteopathic Medical Licensing Examination (COMLEX-USA)

For those pursuing a Doctor of Osteopathy (DO) degree, the COMLEX-USA is required.

1. Level 1 Fees: The fee for the Level 1 exam is $730. Rescheduling fees can range from $85 to $250, depending on how close you are to the test date. If you don’t show up for the exam, you will be charged $400.
2. Level 2 Fees: The fee for level 2 is $730.
3. Level 3 Fees: The fee for level 3 is $910.
4. Non-Examination Fees: Additional fees may include transcript requests and other administrative costs. These fees range between $5 and $75.

4. National Council Licensure Examination (NCLEX) for Nurses

The NCLEX is the standard licensing exam for nurses in the U.S. The base fee for this exam is $200. For those taking the exam internationally, there is an additional surcharge of up to $150.

5. Physician Assistant National Certifying Exam (PANCE)

For aspiring Physician Assistants, the PANCE is the required certification exam. The fee is currently $550, and changes to your test appointment can incur an extra $50 fee.

Application Costs

After paying for and passing the necessary exams, the next step is to apply for your license. These application fees vary by state and profession, so it’s important to know what to expect.

1. State-by-State Breakdown of Initial Application Fees

2. Additional Application-Related Costs

Aside from the base application fees, there are other expenses to consider:

1. Criminal Background Checks: Most states require a background check, which typically costs between $10 and $50.
2. Fingerprinting Fees: This is another common requirement and can cost between $15 and $50.

3. Federation Credentials Verification Service (FCVS) Fees

The FCVS provides a centralized way to verify your credentials, which can simplify the application process in some states.

1. States Requiring FCVS: Some states mandate the use of FCVS, which has a base fee of $395 for physicians.
2. States Accepting FCVS: Other states may accept FCVS profiles but don’t require them, offering you more flexibility in your application approach.

4. Uniform Application Fees

Some states use a uniform application process, which generally costs $60, providing a standardized way to apply across multiple states.

Interstate Medical Licensure Compact (IMLC)

The IMLC is an agreement that allows physicians to obtain licenses in multiple states more easily. This is particularly useful for doctors who practice telemedicine or work in several locations.

The IMLC streamlines the process of obtaining a license in participating states by using a single application. This saves time and reduces the administrative burden.

Costs Associated with IMLC Participation

1. Initial Fees: The IMLC application fee is around $700, not including the individual state licensing fees.
2. State-Specific Fees: Some states may add additional costs, ranging from $100 to $300. For example, the Alabama Medical Licensure Commission charges $75.00. The Arizona Board of Osteopathic Examiners charges $400.00. The Colorado Medical Board charges $273.00. The Maryland Board of Physicians charges $790.00.

Kindly note that these payments are nonrefundable.

Renewal Costs

Licensing doesn’t end once you’re certified. Most licenses must be renewed every few years, and this also comes with a cost.

Most states require license renewals every one to three years, though this can vary based on your specialty and practice location.

Continuing Medical Education (CME) Requirements and Associated Costs

Many states require you to complete CME credits as part of the renewal process. Costs for these courses can range from $200 to $1000 per year.

Hidden Costs of Medical Licensing

Licensing involves more than just the apparent fees. Several hidden costs can add up quickly. Some of these hidden costs will be highlighted below. 

1. Transcript and Verification Fees

Medical schools and previous employers often charge fees for sending transcripts or verifying credentials. The base fee for this is $395.

2. Notary Fees

Certain documents may need to be notarized, which usually costs around $10 to $20 per notary signature. 

3. Travel and Transportation Costs

If you need to travel for exams or interviews, these expenses can quickly add up, especially if flights and hotels are involved.

4. Time Investment and Potential Lost Income

The time spent on preparing for exams, completing applications, and waiting for approval can mean lost income opportunities, especially for those transitioning from residency to full-time practice.

Timeline for Obtaining a License

It generally takes two months to get a license. However, it takes longer for physicians who graduate from medical schools outside the United States.

Keep in mind that the average processing time can be faster or slower depending on delays such as:

• Incomplete applications
• Additional verification requirements
• State-specific rules

Some states offer expedited licensing for an extra fee, usually around $150, to hasten the processing timeline.

Special Considerations

There are specific considerations for different groups, such as international medical graduates and those seeking specialty certifications.

1. Costs for International Medical Graduates

IMGs face additional costs for ECFMG certification and often have to pay for additional documentation and verification. 

2. Multi-State Licensing Considerations

For those who need licenses in multiple states, the IMLC can reduce costs and streamline the process.

3. Costs Associated with Specialty Certifications

Depending on the field and requirements, obtaining additional certifications in a specialty can cost between $500 and $1500.

Impact of Medical Licensing Services

Using a licensing service can help simplify the process, but it comes at a price. These platforms, such as Assured, can be particularly helpful for busy professionals who want to focus on their practice rather than getting bogged down in paperwork.

Medical licensing services assist with everything from completing and submitting applications to tracking renewal deadlines. They also handle communications with state boards and can manage multi-state licensing processes.

While these services typically charge a fee—ranging from a few hundred to over a thousand dollars—they can save significant time and reduce the risk of errors that could delay your application. For those who value convenience and have a packed schedule, this can be a worthwhile investment.

These services also ensure that all aspects of your application meet state-specific requirements, helping you avoid potential pitfalls and ensure compliance. 

Tips for Managing Licensing Costs

Now, if you don’t want to use a medical licensing service, there are some other ways you can manage your licensing costs.

Below are some of these ways.

1. Budgeting Strategies for Medical Students and Residents

Start by creating a dedicated savings plan for licensing costs early in your medical education. Look for scholarships or grants that cover some of these expenses. 

Additionally, keeping track of deadlines and requirements can help avoid costly last-minute fees.

2. Utilizing IMLC for Cost-Effective Multi-State Licensing

If you plan to practice in multiple states, the IMLC can significantly reduce the complexity and cost of obtaining additional licenses. This is especially useful for telemedicine practitioners or those in locum tenens positions.

3. Leveraging Professional Associations for Discounts or Support

Professional organizations often provide resources, discounts, or even mentorship to help with the licensing process. Joining these associations can offer both financial and professional support as you navigate your career in the future.

Future Trends in Medical Licensing

Medical licensing is not static; it evolves with changes in technology, healthcare delivery, and regulations. Staying informed about these trends can help you anticipate changes that may affect your career.

1. Potential Changes in Licensing Processes

Efforts are underway to standardize and simplify the licensing process across states. This could mean fewer steps and lower costs in the future, especially for those moving between states or working in multiple locations.

2. Impact of Telemedicine on Licensing Requirements

The wide adoption of telemedicine has highlighted the need for more flexible licensing regulations. Some states are beginning to adjust their requirements to make it easier for healthcare providers to practice across state lines.

3. Efforts to Streamline and Reduce Licensing Costs

Discussions about reducing administrative burdens and associated costs are ongoing at both state and federal levels. Staying aware of these developments can help you take advantage of new opportunities and save on licensing fees.

Wrapping Up on Medical Licensing Costs

Understanding and managing medical licensing costs is an essential part of planning your medical career. By being aware of the various fees involved—from exams to renewals—you can better prepare and avoid unexpected expenses. 

Not sure how to get started with your medical licensing costs? Leave it to us. At Assured, you can easily cross-license your care providers across multiple states and expand your network coverage. 

Our AI application scanner ensures that all your licensing applications are accepted on the first try. You can also track the status of every provider and license application from one dashboard.