Hospital bills can be overwhelming, especially when you’ve just conquered a serious health crisis. The cost of healthcare today can be completely out of reach for those living without insurance or with inadequate coverage, resulting in potentially devastating debt and a financial hole many of us are not prepared to be in.
Thankfully, most hospitals are not-for-profit organizations, meaning they are required by law to provide charity care to people with limited means. These hospitals have a financial aid department within billing and collections that has the power to reduce or eliminate your bill based on need.
Qualifications
You must meet certain qualifications and guidelines to receive financial help from your hospital. For 100 percent coverage of your expenses, your annual income must not exceed 200 percent of the federal poverty level. However, if your income exceeds this limit, you may qualify for reduced financial aid. If you have a medical emergency that exceeds the medical debt-to-income ratio by 30 percent, the hospital may cover the portion over that percentage.
On top of these guidelines, you must have also used all your available resources before being considered for financial aid from your hospital. Your insurance coverage must be exhausted, both primary and secondary, if you have it. Additionally, any medical assistance for which you qualify must be exhausted, including federal and state aid programs such as Medicaid. Once these resources are used up and there is still debt that you cannot pay, it is time to turn to your hospital’s financial aid department.
Types of Assistance
Your hospital will typically begin by looking at your income level and deciding how much of a discount they can offer. As previously stated, this starts at incomes that are 200 percent of the poverty level, which is typically a 100 percent discount. If your income is less than 300 percent of the poverty level, you’ll usually get 50 percent. The next option is your hospital’s catastrophic medical policies. The hospital will set a fixed limit, which is usually a percentage of your income that you can be billed in a year. Anything above that limit will be waived.
Some hospitals offer an uninsured discount. If you have no insurance, hospitals can put together a discount that gets your bills down to an insured rate. Lastly, hospitals have payment plans to help you pay your hospital bills over time, or hardship plans that allow you to suspend payments during emergencies.
Applying
If you think you qualify for financial aid from your hospital, then you’ll need to provide proof. When you initiate communication with your hospital’s financial aid department, you should have proof of your annual income and a list of your assets ready. You should also gather savings and investment information, such as bank account balances, CDs, money market accounts and retirement funds. If you’re not making income or you don’t have any assets, you should be able to prove that as well.
When you’ve dedicated all your energy to getting healthy, mounting medical bills can come as a surprise and easily overwhelm you. However, by communicating with your hospital’s financial aid office and taking advantage of financial aid for hospital bills, you can ease your financial burden.
Jenny Realo is the Chief Product Officer for CareOne Services, Inc. Jenny is a dedicated consumer advocate and places much of her focus on consumer protections in relation to creditor and industry regulatory changes. She is also on the Board of the Living Classrooms Foundation, which offers inner-city kids and adults numerous after-school athletic, job training, and empowerment programs.
