// 06 — nonprofit hospital obligations

CHARITY CARE

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Hospital financial assistance (charity care)

Nonprofit hospitals are required by federal law (IRC Section 501(r)) to offer financial assistance programs. If your income is below 400% of the federal poverty level, you may qualify for partial or full bill forgiveness — and most patients never know this exists.

Income thresholds (2024 FPL)

Income (% of FPL)Typical assistance
Below 200%100% bill forgiveness
200-250%75-100% reduction
250-300%50-75% reduction
300-400%20-50% reduction
Above 400%Case-by-case (still ask)

How to apply

  1. Find the policy. Search "[HOSPITAL NAME] financial assistance policy" — it must be publicly posted by law.
  2. Download the application. It's usually a 1-2 page form.
  3. Gather documents. You'll need: proof of income (pay stubs, tax return), household size, and the bill you're requesting assistance for.
  4. Submit before it goes to collections. Most hospitals pause collections during the application review (30-120 days).
  5. Follow up in writing. If approved, get the reduction in writing. If denied, appeal — most hospitals have an appeals process.

Important

  • Apply BEFORE the bill goes to collections
  • Nonprofit = 501(c)(3) — most hospitals are nonprofit
  • For-profit hospitals are NOT required to offer charity care
  • If denied, appeal — approval rates on appeal are significant
  • Charity care is separate from Medicaid — you don't need to be on Medicaid