MILLENNIAL GURUS

Most hospitals are required to cancel your debt

Did you know most hospitals are required to forgive your medical debt? If the answer is no, keep reading because you just might qualify.

Popular Instagram Influencer, Healer of Wallets, made sure over 100,000 knew 60% of Hospitals in the US are Non-profit facilities and because of this carry charity care clauses outlined by the IRS. You could leverage these and get your medical debt forgiven by law.

So what are the steps?

  1. Google the Assistance Program: Start by conducting an online search for your hospital’s financial assistance program. Use specific keywords related to debt forgiveness, such as “hospital debt relief program” or “financial assistance for medical bills.” This initial step will direct you to the relevant information you need.
  2. Navigate Beyond Pay by Pill: Once on the hospital’s website, carefully explore the financial assistance section, ensuring you scroll past any payment-related options like “Pay by Pill.” Focus on locating specific details related to debt forgiveness or assistance programs.
  3. Uncover Sliding Scale Fee Structures: Look for information regarding a sliding scale fee structure. This feature is often a key component of financial assistance programs, where the amount you owe is adjusted based on your income level. Understanding how this scale works can provide valuable insights into potential savings on your medical bills.
  4. Check Federal Guidelines for Income Requirements: Investigate the hospital’s financial assistance policy for any mention of federal guidelines or income requirements. Hospitals often align their programs with government standards, and understanding these criteria can help you assess your eligibility for assistance. Look for clear details on income thresholds and documentation needed to qualify.  View a Sample of an Income Requirement Sheet
  5. Write a letter: If your income alone doesn’t qualify you, but your financial situation still makes it difficult to afford your medical bills, don’t count yourself out. The same applies if the hospital’s financial aid policy states that only uninsured individuals qualify, but even with insurance, you’re facing large bills. Attaching a letter of financial hardship to your application can bolster your case. In fact, we recommends that every patient attach a letter, even if you believe you have a good chance. Real people read these and the letters make a significant impact.

In Collections? You can still apply.

Nonprofit hospitals must grant patients a 240-day grace period (approximately eight months) from the initial billing date to seek financial assistance as mandated by the IRS. However, hospitals retain the right to transfer bills to collection agencies much earlier, often within 120 days.

Even if you are currently facing pressure from collection agencies, you still have the opportunity to apply for financial aid, potentially extending your time for resolution.

Notifying collection agents about a pending hospital application can sometimes halt the correspondence. Hospitals can remove you from collections as easily as they place you there.

In certain instances, hospitals may forgive bills that exceed the 240-day mark. It may be worthwhile to apply for assistance, even for bills that are several years old. Overall, seeking help does not hurt.

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