Medical Debt Forgiveness Programs 2026 — The Complete List
Medical debt is the leading cause of personal bankruptcy in the United States. Over 100 million Americans carry some form of medical debt — and most of them have no idea that legitimate forgiveness programs exist that could eliminate some or all of what they owe. This is not wishful thinking. Medical debt forgiveness is real, it is widespread and it is available to more people than you might expect — including people with incomes well above the poverty line. This complete guide lists every major medical debt forgiveness program available in 2026, explains who qualifies for each, and tells you exactly how to apply.
Category 1 — Hospital Charity Care and Financial Assistance Programs
Hospital charity care is the most widely available and potentially most powerful medical debt forgiveness program in the United States — and the one most patients never use.
What Is Hospital Charity Care?
Under IRS Section 501(r), every tax-exempt non-profit hospital in the United States — approximately 60% of all hospitals — is legally required to maintain a written financial assistance policy and provide free or discounted care to patients who cannot afford to pay. This is not a discretionary program. It is a legal requirement tied to the hospital’s tax-exempt status.
Who Qualifies?
Eligibility is based primarily on income relative to the Federal Poverty Level. Typical 2026 thresholds: • Under 200% FPL — most non-profit hospitals: complete bill forgiveness (100% free care) • 200–300% FPL — typically 75–80% reduction • 300–400% FPL — typically 50% reduction • Over 400% FPL — sliding scale, varies by hospital For a single person in 2026: • 200% FPL = approximately $30,120 • 300% FPL = approximately $45,180 • 400% FPL = approximately $60,240 For a family of 4: • 200% FPL = approximately $62,400 • 400% FPL = approximately $124,800 Important: These are typical thresholds. Individual hospitals set their own policies and many are significantly more generous. Always apply regardless of where your income falls.
How to Apply
Call the hospital billing department and ask to speak with the patient financial services department. Request the financial assistance application form. Complete it fully and submit with supporting documentation — proof of income, bank statements, tax return. For a complete step-by-step application guide, see: Hospital Financial Assistance Programs — The Complete Guide for 2026.
Retroactive Applications
Most hospitals accept charity care applications retroactively — often going back 12 months or more after the date of service. If you paid a bill you could have had forgiven, contact the hospital immediately and request a retroactive review.
Category 2 — The Hill-Burton Free Care Program
The Hill-Burton program is one of the most overlooked medical debt forgiveness resources in the country. Many Americans have never heard of it — yet it has been providing free and reduced-cost care since the 1940s.
What Is Hill-Burton?
The Hill-Burton Act of 1946 provided federal construction funding to hospitals and health facilities across the country. In exchange, these facilities accepted an obligation to provide free or reduced-cost care to people who cannot afford to pay — an obligation that lasts for the life of the facility. Many of these facilities are still operating today and are still obligated to provide free care.
Who Qualifies?
Eligibility is based on income. Most Hill-Burton facilities use the following guidelines: • Annual income at or below the official government poverty guidelines: free care • Income up to double the poverty guidelines: reduced-cost care available
How to Find Hill-Burton Facilities Near You
• Call the Hill-Burton hotline: 1-800-638-0742 (free) • Visit: hrsa.gov/get-health-care/affordable/hill-burton • The website has a searchable database of all currently obligated facilities by state
How to Apply
Contact the Hill-Burton obligated facility directly and ask about their free care program. You can apply before receiving care (to ensure coverage) or after receiving care for bills already incurred.
Category 3 — Government Programs That Forgive Medical Debt
Several federal and state government programs can effectively forgive medical debt by covering bills that have already been incurred.
Medicaid Retroactive Eligibility
Medicaid can be applied retroactively in most states — meaning it can cover medical bills incurred up to 3 months before your application date. If you received care while uninsured or underinsured and now qualify for Medicaid, your past bills may be covered entirely. Apply immediately at healthcare.gov or your state Medicaid office.
Medicare Savings Programs
Medicare Savings Programs (MSPs) help low-income Medicare beneficiaries cover premiums, deductibles and copayments — effectively reducing the medical debt that accumulates from these costs. The four types: • Qualified Medicare Beneficiary (QMB) — covers premiums, deductibles and copays • Specified Low-Income Medicare Beneficiary (SLMB) — covers Part B premiums • Qualifying Individual (QI) — covers Part B premiums • Qualified Disabled and Working Individuals (QDWI) — covers Part A premiums Contact your State Medical Assistance (Medicaid) office to apply.
Children’s Health Insurance Program (CHIP)
If you have children under 19 who are uninsured, CHIP may cover their medical bills — including bills already incurred if applied retroactively. Apply at insurekidsnow.gov.
Veterans Affairs (VA) Medical Debt Forgiveness
US military veterans may qualify for complete elimination of VA medical debt through several programs: • VA Financial Hardship Program — waives or reduces VA medical copayments based on income • VA Medical Debt Relief Act (2022) — eliminated certain VA medical debt for veterans with low incomes • VA Copay Exemption — veterans with service-connected disabilities may be fully exempt from medical copays Contact your local VA medical centre or call 1-866-606-8198 for eligibility information.
Category 4 — Non-Profit Medical Debt Relief Organisations
Several non-profit organisations exist specifically to purchase and forgive medical debt — often at pennies on the dollar — for people who cannot afford to pay.
RIP Medical Debt
RIP Medical Debt is a non-profit organisation that purchases portfolios of medical debt from hospitals and collection agencies at a fraction of face value — then forgives that debt entirely on behalf of the patients who owe it. How it works: RIP Medical Debt buys medical debt portfolios for approximately 1 cent per dollar of face value. They then send debt abolishment letters to the patients — completely forgiving the debt with no tax implications. Patients do not apply for this program. If your debt is purchased by RIP Medical Debt, you will receive a letter in the mail notifying you that your debt has been forgiven. How to increase your chances of being helped: • RIP Medical Debt targets debt owed by patients earning less than 4x the poverty level or whose medical debt exceeds 5% of annual income • They purchase debt from hospital systems throughout the US • You can donate to RIP Medical Debt to help others — $1 forgives approximately $100 in medical debt Visit: ripmedicaldebt.org for more information.
Dollar For
Dollar For is a non-profit organisation that helps patients apply for hospital charity care programs they may have missed. Their trained volunteers assist patients in completing financial assistance applications and navigating the hospital system. They have helped patients recover millions of dollars in medical bills through charity care programs. Visit: dollarfor.org — completely free service
Patient Advocate Foundation (PAF)
PAF provides free case management for patients with serious illness dealing with medical debt, insurance denials and financial hardship. Their case managers are trained patient advocates who negotiate directly with hospitals and insurance companies on your behalf. Services are completely free to patients. • Website: patientadvocate.org • Helpline: 1-800-532-5274
NeedyMeds
NeedyMeds maintains a comprehensive database of patient assistance programs — including programs that cover prescription medications, medical procedures and general medical costs. • Website: needymeds.org • Helpline: 1-800-503-6897
Category 5 — Disease-Specific Medical Debt Forgiveness Programs
Many organisations provide financial assistance and debt relief specifically for patients with certain diagnoses. These programs are often unknown to patients because they are not widely publicised.
Cancer
American Cancer Society — provides financial assistance for cancer-related costs including transportation, lodging and some treatment costs. cancer.org/treatment/findingandpayingfortreatment CancerCare — financial assistance grants for cancer patients, including help with treatment costs. cancercare.org/financial Leukemia and Lymphoma Society (LLS) — co-pay assistance for blood cancer patients. lls.org/support/financial-support Susan G. Komen — financial assistance for breast cancer patients including treatment costs and medical bills. komen.org/support-resources/financial-assistance Cancer Financial Assistance Coalition (CFAC) — searchable database of cancer-related financial assistance programs. cancerfac.org
Heart Disease
American Heart Association — financial resources guide for heart patients. heart.org/en/support-us/stories/financial-resources-for-heart-patients Mended Hearts — peer support and resources for heart patients including financial assistance navigation. mendedhearts.org
Diabetes
Insulin manufacturer patient assistance programs: • Novo Nordisk — novonordisk-us.com/patients/patient-assistance.html • Eli Lilly — insulinaffordability.com • Sanofi — insulinsaving.com American Diabetes Association — resources for managing diabetes costs. diabetes.org/diabetes/medication-management/insulin-help
Kidney Disease
American Kidney Fund (AKF) — provides health insurance premium assistance and direct financial aid for kidney patients. kidneyfund.org/patient-services/financial-assistance National Kidney Foundation — emergency financial assistance for kidney patients. kidney.org/financial-assistance
HIV/AIDS
Ryan White HIV/AIDS Program — federally funded program providing comprehensive HIV/AIDS care including medications, medical visits and support services for uninsured and underinsured patients. hrsa.gov/ryan-white-hiv-aids-program
Mental Health
National Alliance on Mental Illness (NAMI) — resources for managing mental health care costs. nami.org/Support-Education/Mental-Health-Education/NAMI-Financial-Assistance
Rare Diseases
National Organization for Rare Disorders (NORD) — patient assistance programs for rare disease patients including medication and treatment costs. rarediseases.org/patient-assistance-programs HealthWell Foundation — financial assistance grants for patients with chronic and serious illnesses. healthwellfoundation.org
Category 6 — State Medical Debt Forgiveness Programs
Many states have programs that go beyond federal requirements to assist residents with medical debt. Here are some of the most significant:
California
California Hospital Fair Pricing Act — requires hospitals to offer free care to uninsured patients with incomes up to 350% of FPL and limits charges for low-income patients. Hospitals must screen all uninsured patients for eligibility. Medi-Cal (California Medicaid) — one of the most comprehensive state Medicaid programs. Covers many adults with incomes up to 138% of FPL and offers retroactive coverage.
New York
New York State Hospital Financial Assistance Law — requires all hospitals (including for-profit) to screen patients for charity care eligibility and provide free care for patients up to 300% of FPL. NY State of Health — Medicaid expansion covers adults up to 138% of FPL with extensive benefits.
New Jersey
New Jersey Hospital Care Payment Assistance (Charity Care) Program — mandatory program for all licensed hospitals. Free care for incomes under 200% FPL, sliding scale up to 300% FPL. Hospitals are reimbursed by the state for providing this care.
Massachusetts
Massachusetts Health Safety Net — provides free care to uninsured and underinsured Massachusetts residents with incomes up to 300% of FPL. Funded jointly by hospitals and the state government.
Texas
Texas Charity Care Program — requires non-profit hospitals to provide charity care. The Texas Health and Human Services Commission maintains oversight of hospital charity care programs.
Illinois
Illinois Hospital Uninsured Patient Discount Act — requires hospitals to offer discounts to uninsured patients with incomes up to 600% of FPL. This is one of the highest income thresholds of any state program.
How to Find Your State’s Programs
• Call 211 — available in most states, connects you with local and state assistance programs • Contact your State Health Department • Visit benefits.gov — federal benefits eligibility tool • Contact your State Medicaid office • Visit your hospital’s patient financial services department and ask what state programs apply
Category 7 — Pharmaceutical Patient Assistance Programs
Medication costs are a major driver of medical debt. Pharmaceutical companies are required by law to offer patient assistance programs (PAPs) that provide medications free or at greatly reduced cost to patients who cannot afford them.
How to Find Pharmaceutical Patient Assistance Programs
NeedyMeds (needymeds.org) — comprehensive searchable database of PAPs for thousands of medications. Free to use. RxAssist (rxassist.org) — database of pharmaceutical company PAPs with application information. Partnership for Prescription Assistance (pparx.org) — connects patients with PAPs and other prescription assistance resources. GoodRx (goodrx.com) — while not technically debt forgiveness, GoodRx coupons can reduce prescription costs by 40–80%, preventing medication costs from becoming debt.
Major Pharmaceutical Company PAPs
Most major pharmaceutical companies operate their own assistance programs: • AstraZeneca — AZ&Me Prescription Savings Program • Bristol Myers Squibb — BMS Patient Assistance Foundation • Johnson & Johnson — Johnson & Johnson Patient Assistance Program • Merck — Merck Patient Assistance Program • Pfizer — Pfizer RxPathways • Novartis — Novartis Patient Assistance Now (PAN) Search each company’s website directly or use NeedyMeds to find the specific program for your medication.
Category 8 — Emergency and Crisis Medical Debt Assistance
For patients facing immediate financial crisis related to medical bills, these organisations provide emergency assistance:
HealthWell Foundation
Provides financial assistance grants for patients with chronic and life-altering illnesses — including help with medical bills, insurance premiums, deductibles and copays. Website: healthwellfoundation.org Phone: 1-800-675-8416
Patient Advocate Foundation Co-Pay Relief Program
Provides direct financial assistance to patients who cannot afford their co-payments, co-insurance and deductibles. Website: patientadvocate.org/copay-relief Phone: 1-866-512-3861
United Way 211
Dial 211 from any phone in most US states to connect with a specialist who can identify local medical debt assistance programs, emergency funds and community resources specific to your situation. Website: 211.org
Category 9 — Bankruptcy as Medical Debt Forgiveness
While bankruptcy should always be a last resort, it is a legitimate legal mechanism for completely eliminating medical debt — and for many people it may be the most appropriate solution.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common type for individuals and can discharge most unsecured debt — including medical debt — completely. The process typically takes 3 to 6 months from filing to discharge. Under Chapter 7: • Most medical debt is discharged (forgiven) entirely • The automatic stay immediately stops all collection activity — including lawsuits and wage garnishment • You may be able to keep essential property through state exemptions
Who Qualifies for Chapter 7?
To qualify for Chapter 7 you must pass the bankruptcy means test — which compares your income to the median income for your state. Most people with medical debt and limited income qualify.
Filing Fee Waiver
The Chapter 7 filing fee can be waived for applicants whose income is below 150% of the poverty level — making bankruptcy accessible even to people with very limited financial resources.
Should You Consider Bankruptcy for Medical Debt?
Consider bankruptcy if: • Your medical debt exceeds your annual income • You have exhausted all other forgiveness options • Collection lawsuits or wage garnishment are imminent • Your overall debt situation — medical and otherwise — is unmanageable For a complete guide to filing Chapter 7 yourself, see our partner site: DIYBankruptcyGuide.com
Real Case Study — How Three Programs Combined to Eliminate $67,000 in Medical Debt
When Rosa M. from California accumulated $67,000 in medical debt following treatment for a serious kidney infection and subsequent complications, she felt completely overwhelmed. Over 6 months, Rosa systematically worked through every available program: Step 1 — Applied for Medicaid retroactively Rosa had been uninsured during her hospitalisation. After consulting with a navigator at her county health department, she discovered she qualified for Medi-Cal (California Medicaid) retroactively for the 3 months before her application. Medi-Cal covered $41,000 of her hospital bills entirely. Step 2 — Applied for hospital charity care on remaining balance For the $26,000 remaining — from a specialist group and follow-up procedures not covered by the retroactive Medicaid period — Rosa applied for charity care at each provider. Her income of $28,000 (approximately 185% of FPL as a single person) qualified her for 75% reduction at the hospital. Charity care reduced her remaining balance from $26,000 to $6,500. Step 3 — Applied for prescription assistance programs Rosa’s ongoing kidney medication had been costing her $380 per month. Using NeedyMeds, she identified a pharmaceutical PAP that provided her medication completely free of charge — eliminating an ongoing financial burden. Step 4 — Negotiated a payment plan on the remaining $6,500 Rosa set up a zero-interest payment plan of $75 per month on the remaining $6,500 balance. Final outcome: • Original medical debt: $67,000 • Eliminated through retroactive Medicaid: $41,000 • Eliminated through charity care: $19,500 • Remaining balance on payment plan: $6,500 • Monthly medication cost saved: $380/month • Total debt eliminated: $60,500 out of $67,000 “I spent one Saturday researching and making phone calls,” Rosa said. “By the end of the day I had a clear path forward. The combination of retroactive Medicaid and charity care was something I never would have found without looking.”
Warning — Medical Debt Forgiveness Scams
The desperation that comes with unmanageable medical debt makes patients vulnerable to scams. Be aware of these red flags:
Red Flags — Avoid Any Organisation That:
• Charges upfront fees before helping you — legitimate non-profits never charge patients • Guarantees complete debt elimination without reviewing your situation • Asks for your Social Security number or bank account information before providing any services • Claims to have special relationships with hospitals or government agencies that give them unique access • Pressures you to act immediately or lose the opportunity • Cannot provide a physical address or clear non-profit status verification
How to Verify a Legitimate Non-Profit
Check any organisation’s non-profit status at: • GuideStar/Candid — candid.org — searchable database of non-profit organisations • IRS Tax Exempt Organisation Search — apps.irs.gov/app/eos • BBB Wise Giving Alliance — give.org Legitimate programs like RIP Medical Debt, Dollar For, Patient Advocate Foundation and NeedyMeds are all verifiable non-profits with transparent operations and no patient fees.
Frequently Asked Questions
Is medical debt forgiveness taxable income?
Generally, forgiven debt is considered taxable income under IRS rules. However, there are important exceptions for medical debt: debt forgiven through charity care programs is typically not considered taxable income. Debt forgiven through bankruptcy discharge is also not taxable. Debt forgiven by collection agencies as part of a settlement may be taxable — you will receive a Form 1099-C if $600 or more is forgiven. Consult a tax professional for advice specific to your situation.
Can I apply for multiple medical debt forgiveness programs at the same time?
Yes — and you should. Different programs cover different types of costs and different time periods. For example, retroactive Medicaid might cover your hospitalisation while pharmaceutical assistance covers your ongoing medications, and a non-profit organisation might help with remaining out-of-pocket costs. Applying to multiple programs simultaneously maximises your total relief.
What if I have already paid my medical bills — can I still apply for forgiveness programs?
For hospital charity care — yes. Most hospitals accept retroactive applications and will issue refunds for amounts that should have been forgiven. Contact the hospital billing department and request a retroactive review immediately. For government programs like retroactive Medicaid — also yes, within the retroactive coverage window. You cannot typically receive forgiveness from programs like RIP Medical Debt after you have paid.
How long do medical debt forgiveness applications take?
Hospital charity care: typically 2 to 4 weeks. Medicaid retroactive coverage: varies by state, typically 30 to 90 days. Non-profit assistance programs: varies widely — from immediate to several months. Pharmaceutical PAPs: typically 2 to 6 weeks for approval.
Does medical debt forgiveness appear on my credit report?
No — receiving forgiveness through a hospital charity care program or non-profit does not appear on your credit report. If debt is forgiven by a collection agency as part of a settlement, the collection account should be updated to show a zero balance and eventually removed. See our complete guide: Does Medical Debt Affect Your Credit Score?
What if my income is above the thresholds for most programs?
Even with a higher income, you may qualify for: hardship programs based on debt-to-income ratio (if your medical debt exceeds a certain percentage of your income), disease-specific assistance programs that have more generous thresholds, pharmaceutical assistance programs (many have income thresholds above 400% FPL), and state programs that may have higher thresholds than federal guidelines.
Can employers see that I applied for medical debt forgiveness?
No. Medical debt forgiveness applications are private financial matters. They do not appear on employment background checks, credit reports (for charity care) or any other document accessible to employers.
Your Medical Debt Forgiveness Action Plan — Start Today
Work through these programs in this order — from fastest to apply to most complex: This week: 1. Call your hospital — ask about charity care and financial assistance applications 2. Check Medicaid retroactive eligibility — apply at healthcare.gov or your state office 3. Call 211 — find local and state assistance programs specific to your area 4. Check Hill-Burton facilities near you — call 1-800-638-0742 This month: 5. Research disease-specific programs — use the organisations listed in Category 5 6. Search pharmaceutical PAPs — use NeedyMeds for all current medications 7. Contact Dollar For — dollarfor.org — for help applying for hospital charity care 8. Contact Patient Advocate Foundation — for complex cases with serious illness If still struggling: 9. Contact NFCC non-profit credit counsellor — 1-800-388-2227 10. Research Chapter 7 bankruptcy — as a last resort for unmanageable overall debt 11. Consult a patient rights attorney — if hospitals are violating their charity care obligations You do not have to carry this debt alone. The programs in this guide collectively help millions of Americans reduce or eliminate their medical debt every year. The only thing required is knowing they exist and taking action. Related guides: • Hospital Financial Assistance Programs — The Complete Guide for 2026 • What to Do If You Can’t Pay a Hospital Bill — 6 Options • How to Negotiate Medical Bills After Surgery — Save Up to 80% • Does Medical Debt Affect Your Credit Score?Medical and Financial Disclaimer: The information on FightMedicalBill.com is for educational purposes only and does not constitute medical, legal or financial advice. Program availability, eligibility thresholds and application processes change regularly. Always verify current information directly with each program. Tax implications of debt forgiveness vary — consult a qualified tax professional for advice specific to your situation.
