Financial assistance
Nonprofit hospitals must offer financial assistance. Most people never ask.
501(r) requires a policy, an application, and limits on collections while you wait.
If you received care at a nonprofit hospital, the hospital is required to have a financial assistance policy. Many people qualify, including some middle-income households, and almost nobody applies.
What the rules require
- A written Financial Assistance Policy, posted on the website with the application and a plain-language summary.
- Free paper copies on request.
- Limits on collections: generally a notice period and an application window counted from the first bill after discharge.
- That eligible patients are not charged more than the amounts generally billed to insured patients.
How to apply
- Search for the hospital's financial assistance policy and download the policy, application, and summary.
- Check the income limits against your household. Ask your agent to read them and tell you where you might land.
- Complete the application with proof of income.
- Send it with a cover letter asking them to suspend billing and collections while it is pending.
- Track the decision and follow up if it stalls.
The patient signs and gathers documents. The agent can find the policy, read the eligibility rules, draft the cover letter, and chase the decision.
In our own case study we never used financial assistance, because the balances were small or caused by billing errors. For a large nonprofit hospital bill, this is often the biggest single lever available.
Free help exists. Dollar For is a donor-funded nonprofit that helps people apply at no charge.
Not legal or financial advice. Check the hospital's current policy and the IRS rules for 501(c)(3) hospitals.