Are you eligible for medical debt relief?
To be eligible for medical debt relief programs, individuals typically need to meet specific criteria that vary by state or program. Here are the common eligibility requirements based on the information from various sources:
Common Eligibility Requirements for Medical Debt Relief Programs
- Income Level
- Most programs require that applicants have an annual household income at or below 400% of the Federal Poverty Level (FPL). This threshold varies depending on household size, but for example, in 2024, a family of four would need to have an income below approximately $124,800 to qualify.
- Alternatively, some programs allow individuals with incomes above this threshold if their medical debt constitutes 5% or more of their estimated annual household income.
- Residency
- Applicants must usually be residents of the state or county offering the program. For instance, programs in Arizona, Illinois, and New York specifically require participants to be residents of those areas.
- Medical Debt Criteria
- Eligible medical debt must typically be related to necessary medical services and may need to be at least one year old or have gone through standard collection efforts.
- The debt must often be held by participating healthcare providers who agree to sell or donate the debt to nonprofit organizations like Undue Medical Debt for forgiveness.
- Application Process
- Many programs do not require individuals to apply directly. Instead, they automatically identify qualifying debts through partnerships with healthcare providers and notify eligible individuals once their debts are forgiven.
- However, some programs may require basic documentation to confirm income levels and residency.
- Specific Program Variations
- Each program may have unique stipulations regarding what types of medical debt qualify (e.g., only “medically necessary” services) and how debts are processed (e.g., whether they must be in collections).
If you believe you might qualify for medical debt relief, it’s essential to check the specific requirements of your local program. Many states and counties have implemented initiatives to alleviate the burden of medical debt for residents who meet these criteria. Contact local health departments or nonprofit organizations like Undue Medical Debt for more information on how to proceed with your application or inquiry about eligibility.
Read: What are the eligibility requirements for medical bill forgiveness programs?
