Americans have nearly $200 billion worth of medical debt, and as healthcare prices continue to rise, that number isn’t likely to shrink — still, many Americans may not realize that they are eligible for financial assistance after receiving their hospital bill.
The Internal Revenue Service requires non-profit hospitals to provide charity care programs, which offer free or discounted services to patients who meet the hospital or state’s eligibility criteria, in exchange for its tax-exempt status. Non-profit hospitals account for 58% of community hospitals in the U.S., according to Kaiser Family Foundation, meaning many Americans do have access to hospitals with financial aid. And yet, hospital charity care is incredibly underutilized: KFF found that charity care costs represented 1.4% or less of operating expenses at half of all hospitals in 2020.
