Most hospitals have their own debt forgiveness programs, but you have to ask for them — they don't advertise

Hospital financial information programs exist at nearly every major medical center in the United States. These programs reduce or eliminate what you owe for care you've already received. The catch: hospitals are not required to tell you they exist, and many patients never learn about them because they don't look.

The program at your local hospital works differently than the one across town. Some forgive debt based on your household income alone. Others require you to fill out a formal process. A few will negotiate with you over the phone. The fastest way to find out what your hospital offers is to call the billing department and ask for the financial information or charity care office — use those exact words, because different hospitals call it different things.

You can also search your hospital's website for "financial information," "charity care," or "patient financial services." Most hospitals post their policies online, though the pages are often buried several clicks deep.

Key Takeaways

  • Every hospital system has a financial information office, but the name varies — search for "charity care," "financial information," or "patient financial services" on the hospital's website.
  • Income limits and forgiveness amounts differ by hospital and by state, so you need to contact your specific hospital to learn what you might receive.
  • You will usually need to provide proof of income (recent pay stubs, tax returns, or proof of benefits) and sometimes a signed process.
  • Hospitals must make their financial information policies public under federal law, so if you can't find the policy online, call and ask them to mail or email it to you.
  • Debt forgiveness can take weeks to process, so contact the hospital before the debt goes to a collection agency if you want to avoid that step.

How hospital financial information programs work

Hospital debt forgiveness programs operate on a sliding scale based on your household income and family size. If your income falls below a certain threshold — often 200% to 400% of the federal poverty line, though this varies — the hospital may forgive the entire bill. If your income is higher, you might receive a partial discount or a payment plan with no interest.

The federal poverty line changes each year. For 2024, the poverty line for a single person is around $15,000 per year; for a family of four, it's around $31,000. A hospital offering forgiveness at 300% of poverty would forgive debt for a single person earning up to roughly $45,000 per year. But again, this varies by hospital and by state — some hospitals are more generous, others less so.

The hospital's financial information office will ask you to prove your income. Acceptable proof usually includes recent pay stubs, a tax return from the past year, a benefits award letter if you receive unemployment or disability, or a letter from your employer stating your salary. If you're self-employed, bring tax returns or bank statements showing your income.

Finding the financial information office at your hospital

Start with the hospital's main website. Look for a link labeled "Billing," "Patient Services," "Financial information," or "Charity Care." If you can't find it, use the site's search function and type "financial information" or "charity care." Most large hospital systems have a dedicated page explaining their programs.

If the website doesn't help, call the hospital's main billing number — this is usually on your bill or on the hospital's website. Tell the person who answers that you received a bill and want to know about financial information programs. They will either transfer you to the right office or give you a direct number to call.

Write down the name of the person you speak with and the date you called. If you're told to fill out an process, ask whether it can be mailed, emailed, or submitted online. Some hospitals still require you to come in person, but many now accept applications by mail or email.

What you need to bring or send

Most hospitals will ask for the same basic information. Have these items ready before you call or visit:

  • Your hospital account number (on your bill)
  • Proof of household income (pay stubs from the past month, last year's tax return, or a benefits award letter)
  • Proof of household size (birth certificates, marriage certificate, or a letter from your employer or benefits office)
  • Proof of residency (utility bill, lease, or mortgage statement)
  • A copy of the bill itself, or the account number

Some hospitals also ask about your assets — savings, investments, or property you own. Be prepared to report these if asked. A few hospitals have asset limits, meaning if you have more than a certain amount in savings, you won't receive forgiveness even if your income is low.

If you're explore for forgiveness on a bill that's already with a collection agency, you can still contact the hospital's financial information office. Some hospitals will work with you even after the debt has been sent to collections, though the process may take longer.

How long approval takes and what happens next

Most hospitals process financial information applications within two to four weeks. Some are faster; others take six weeks or longer. Call the financial information office after two weeks to check on your process's status.

Once you're approved, the hospital will send you a letter explaining how much debt is being forgiven and whether you owe anything remaining. If you owe a balance, the hospital may offer a payment plan. If the entire bill is forgiven, you'll receive a notice that the account is settled.

The hospital will report the forgiven amount to the IRS on a Form 1099-C if the forgiveness exceeds $600. This means the forgiven debt may be counted as taxable income on your tax return. Talk to a tax professional or contact the IRS if you're unsure how this affects your taxes.

What to do if your hospital doesn't have a program or you're denied

A small number of hospitals don't have formal financial information programs, though federal law requires them to have a policy in place. If your hospital says it doesn't have a program, ask to see the written policy — hospitals must make this public. If they refuse, contact your state's attorney general's office or your state health department.

If you're denied forgiveness, ask why. The hospital must explain the reason in writing. Common reasons for denial include income above the hospital's threshold, assets above the limit, or insurance that should have covered the bill. If you believe the decision is wrong, ask whether you can appeal.

If the hospital won't budge, look into other options. Some nonprofits offer medical debt information, and some states have additional programs. Your local 211 service (dial 211 or visit 211.org) can point you toward programs in your area.

How hospital forgiveness differs from other medical debt relief

Hospital financial information is different from debt settlement companies, credit counseling, or bankruptcy. When a hospital forgives debt, it's the hospital itself deciding to write off what you owe — no middleman, no fees, no credit damage beyond what's already happened. The forgiveness is when ready once approved, not negotiated over months.

This also means hospital forgiveness doesn't affect your credit score the way a settlement with a collection agency might. If the debt is already on your credit report, the hospital's forgiveness won't remove it, but it will stop the debt from growing and stop collection calls.

If you have medical debt from multiple providers — a hospital, a doctor's office, a lab — you'll need to contact each one separately. Each has its own financial information program with its own rules.

Frequently Asked Questions

Can I get forgiveness if I have insurance?

Yes, but the hospital will usually ask why insurance didn't cover the bill. If your insurance denied the claim, you may need to provide a copy of the denial letter. If you have insurance but didn't use it, the hospital may require you to submit the bill to your insurance first before considering forgiveness.

What if I already paid part of the bill?

You can still request forgiveness for the remaining balance. If you're approved, the hospital will forgive what's left. Some hospitals will also refund overpayments if you paid more than you owed, though this varies by hospital policy.

Does hospital debt forgiveness hurt my credit score?

If the debt is already on your credit report, forgiveness won't remove it. However, once the hospital forgives the debt, it stops growing and stops being reported as delinquent. Over time, the older the account becomes, the less it affects your score.

Can I explore for forgiveness after I've been sued?

Yes. Even if the hospital has filed a lawsuit or obtained a judgment against you, you can still contact the financial information office. The process may be more complicated, and you may want to speak with a lawyer, but forgiveness is still possible.

What if the hospital says I make too much money?

Ask whether the hospital offers a payment plan or a discount for uninsured patients. Some hospitals reduce bills by 20% to 50% even if you don't meet the forgiveness income threshold. You can also ask whether the hospital will negotiate the bill amount.