Will medical bill forgiveness affect my credit score?

No. Having a bill forgiven through a hospital's financial assistance program does not appear on your credit report. If the debt was already in collections, the collection agency must remove it once the debt is resolved.

Can I apply for forgiveness after a bill goes to collections?

Yes. Many hospitals will still process financial assistance applications even after a bill has been sent to collections. Contact the hospital directly, not the collection agency.

Medical Bill Forgiveness: Programs That Can Erase Your Debt

Medical Debt Forgiveness Is Real

Millions of Americans qualify for partial or full forgiveness of medical bills but never apply. Nonprofit hospitals are legally required to offer financial assistance programs under IRS rules. For-profit hospitals and physician groups often have hardship programs too. Additionally, nonprofits like RIP Medical Debt purchase and forgive medical debt in bulk. If you are struggling with medical bills, forgiveness may be available — but you have to ask.

Hospital Financial Assistance (Charity Care)

Under IRS Section 501(r), all nonprofit hospitals must maintain a financial assistance policy (FAP) and make it available to patients. Many hospitals forgive 100% of bills for patients earning below 200% of the federal poverty level (about $30,120 for an individual in 2026) and offer sliding-scale discounts for higher incomes. To apply, request the hospital's financial assistance application, provide proof of income, and submit it to the billing department.

State and Local Assistance Programs

Many states offer medical debt relief through Medicaid, state-funded charity care pools, or emergency medical assistance programs. Some states, like New York and New Jersey, have laws requiring hospitals to screen patients for financial assistance before sending bills to collections. Contact your state's department of health or insurance commissioner to learn what programs are available in your area.

Nonprofit Debt Relief Organizations

Organizations like RIP Medical Debt (now Undue Medical Debt), Dollar For, and the PAN Foundation help patients with medical bills. Dollar For helps patients apply for hospital financial assistance and has helped forgive over $100 million in bills. The Patient Advocate Foundation provides case managers who negotiate directly with providers. These services are free to patients.

How to Apply for Forgiveness

Start by calling the hospital billing department and asking about their financial assistance program. Request the application form. Gather documents: recent tax returns, pay stubs, bank statements, and a list of monthly expenses. Submit everything together. If you are denied, appeal the decision with a letter explaining your hardship. Many hospitals will negotiate even if you do not qualify for full forgiveness.