Medical bills in New Jersey: free care, credit reports and your rights
New Jersey has a law that requires hospitals to give free or discounted care to people with income up to 500% of the federal poverty level (the exact level depends on the hospital and your situation).
New Jersey law limits when some medical debt can be reported to credit bureaus.
Charity care means free or discounted care for people with low income. Hospitals also call it financial assistance.
Checked against official sources: October 30, 2026.
Federal rules for nonprofit hospitals apply in every state. Free help can review your bill.
Can I get my bill reduced in New Jersey?
New Jersey has a law that requires hospitals to give free or discounted care to people with income up to 500% of the federal poverty level (the exact level depends on the hospital and your situation).
| Income (% of poverty level) | What you get | Details |
|---|---|---|
| Up to 200% | Free care | If your family income is at or below 200% of the federal poverty level and you meet the asset limits, necessary hospital care is free. All covered hospitals |
| 200% to 300% | Discount | If your family income is above 200% and up to 300% of the poverty level, you pay part of the hospital's charges: 20% (above 200% to 225%), 40% (above 225% to 250%), 60% (above 250% to 275%) or 80% (above 275% to 300%). If your medical expenses are more than 30% of your family's yearly gross income, the amount above that is fully covered. All covered hospitals |
| 300% to 500% | Discount | If you are an uninsured New Jersey resident and your family gross income is less than 500% of the poverty level, a licensed hospital may charge you no more than 115% of what Medicare would pay for the care. All hospitals licensed by the New Jersey Department of Health (uninsured New Jersey residents only) |
These are the income levels written in the law. Each hospital decides using its own policy.
- The law
New Jersey Hospital Care Payment Assistance Program (Charity Care)
- Which hospitals
All acute care hospitals in New Jersey. A separate law caps what any licensed hospital may charge uninsured New Jersey residents with lower incomes.
- Who can get help
New Jersey residents who have no health coverage or coverage that pays only part of the bill, who are not eligible for Medicaid/NJ FamilyCare or another program, and who meet the income and asset limits.
- The most you can be charged
Uninsured New Jersey residents with family gross income below 500% of the poverty level may be charged no more than 115% of the Medicare rate for the care. If you qualify for reduced-charge charity care, you pay only the percentage of charges set by the income table.
- Deadline to apply
You can apply up to one year from the date of outpatient service or inpatient discharge, and send more documents during that year. A hospital may accept an application up to two years after service or discharge. The hospital must decide in writing within 10 working days of a complete application.
Law: N.J.A.C. 10:52-11.5 to 11.14; N.J.S.A. 26:2H-12.52
Check your income level
Find out what percent of the federal poverty level your household income is, and compare it with the income levels in New Jersey law.
Is my debt too old in New Jersey?
| Kind of agreement | Time limit to sue |
|---|---|
| Written contract | 6 years |
| Open account | 6 years |
| Oral (spoken) agreement | 6 years |
A lawsuit on a contract or account must be filed within 6 years.
- What can restart the clock
A new promise or acknowledgment counts only if it is in writing and signed by you. A payment of principal or interest keeps whatever effect it has under the law.
Law: N.J.S.A. 2A:14-1, 2A:14-24
A time limit to sue can differ by kind of agreement, and when it starts and what restarts it can differ; a court decides.
Can they sue me or report it in New Jersey?
- Credit reports
Partial limit
A health care provider or medical debt collector may not report your medical debt to a credit bureau for care received on or after July 22, 2024.
- Waiting rules
Wait before collections: 120 days after the first bill
Wait before a lawsuit: 120 days after the first bill
A provider or medical debt collector may not take any collection action until 120 days after the first bill was sent and until it has offered you a reasonable payment plan. Collection actions include selling the debt, reporting it to a credit bureau, liens, seizing a bank account or property, suing and wage garnishment. Sending bills and reminders is allowed. At least 30 days before any collection action, it must send you another bill and a notice saying what action it will take and the date, at least 30 days away. While an insurance appeal of the claim is pending and the creditor knows about it, it may not contact you to collect, sue you or send the bill to a collector.
- Interest
At most 3% a year
Interest on medical debt may not be more than 3% a year, including interest on a court judgment for medical debt. A reasonable payment plan may not charge more than 3% a year and must give at least a 60-day grace period for late payments.
- Liens on your home
A lien on your property is a collection action, so it is allowed only after the 120-day wait, a payment plan offer and a 30-day notice.
- Wage garnishment
A provider or medical debt collector may not garnish your wages for medical debt if your yearly income is less than 600% of the federal poverty level. General New Jersey limit: a wage execution may take no more than 10% of wages unless income is above 250% of the poverty level.
- Bank account
Seizing a bank account is a collection action covered by the 120-day wait, payment plan offer and 30-day notice rules.
- Selling the debt
A provider may sell medical debt only after a written agreement in which the buyer promises not to report it to a credit bureau, not to use liens, bank seizures, lawsuits or garnishment, and not to otherwise seek payment for the care. A provider may not send a bill to a collector or sell it while it knows an insurance appeal is pending.
- Lawsuit rules
Suing is a collection action and is subject to the 120-day wait, payment plan offer and 30-day notice. While a creditor knows an insurance appeal of the claim is pending, it may not sue you or start arbitration. If you accept a reasonable payment plan and keep to it, no collection action may be taken. Accepting a plan does not mean you admit the debt is valid, and you keep all your defenses. The Attorney General enforces this law; the law itself does not give you a separate right to sue over a violation.
Law: N.J.S.A. 56:11-57 to 56:11-62 (Louisa Carman Medical Debt Relief Act); N.J.S.A. 2A:17-56
Payment plans and interest in New Jersey
- Hospitals must offer a payment plan
- Monthly payment limit: 3% of your monthly income
Before any collection action, a provider or medical debt collector must offer you a reasonable payment plan. Monthly payments must be an amount you can reasonably afford, or no more than 3% of your monthly income if the creditor knows it. The plan must let you pay in full over a reasonable time (between six months and five years, based on the amount and your finances), allow changes if your finances change significantly, be in a written agreement, give a grace period of at least 60 days for late payments, and charge no more than 3% interest a year.
Law: N.J.S.A. 56:11-57, 56:11-59
Surprise bills and ambulance bills in New Jersey
- State law
Out-of-network Consumer Protection, Transparency, Cost Containment and Accountability Act
Law: P.L.2018, c.32; N.J.S.A. 26:2SS-4, 26:2SS-5, 26:2SS-7, 26:2SS-8, 26:2SS-11
- Which plans it covers
State-regulated health plans. Self-funded employer plans are covered only if the plan chooses to opt in; members of other self-funded plans can use state arbitration for a disputed bill.
- What it adds
For emergency or urgent care at any hospital or other facility, and for out-of-network care you did not choose at an in-network facility (inadvertent out-of-network care), the facility and professionals may bill you only your in-network deductible, copay or coinsurance.
- Ground ambulance
No state limit listed
New Jersey has no state limit on ground ambulance bills that we list here. The federal No Surprises Act generally does not cover ground ambulances either, so ask the ambulance company about financial assistance and a payment plan.
Law: N.J.S.A. 26:2SS-4, 26:2SS-5, 26:2SS-7, 26:2SS-8, 26:2SS-11
Itemized bills and price estimates in New Jersey
New Jersey law gives you a right to an itemized bill.
As a hospital patient, you have the right to examine and get an explanation of your bill, whatever the source of payment. The Department of Health says you have the right to receive a copy of the hospital charges, an itemized bill if you ask, and an explanation, and to appeal charges and get an explanation of the appeals process.
Law: N.J.S.A. 26:2H-12.8(m)
Price estimates
If a health care professional is out of your plan's network, before scheduling a non-emergency procedure the professional must tell you so and that an estimate is available. If you ask and give the service and its CPT codes, the professional must tell you in writing the amount or estimated amount they will bill you. Facilities must post their standard charges and the plans they participate in.
Law: N.J.S.A. 26:2SS-4, 26:2SS-5
Health coverage and Medicaid in New Jersey
NJ FamilyCare (Medicaid) is New Jersey's Medicaid program. Apply for it here:
Where to complain in New Jersey
- Hospital bills and financial assistance: New Jersey Department of Health, Charity Care Unit · 1-866-588-5696
Questions or concerns about charity care, how a hospital applied the rules, or your application. - Attorney general: New Jersey Division of Consumer Affairs (Office of the Attorney General)
A provider or debt collector broke the Medical Debt Relief Act (credit reporting, waiting periods, interest, garnishment) or other consumer laws. - Health insurance: New Jersey Department of Banking and Insurance, Consumer Inquiry and Response Center · 1-800-446-7467
Problems with a state-regulated health plan, including surprise out-of-network bills.
Free help in New Jersey
Free tools, letters and checklist
Good to know in New Jersey
- Charity care eligibility is decided by the hospital where you got care, and persons found eligible may not be billed or sent to collections for the covered amount.
Law: N.J.A.C. 10:52-11.13, 11.14
- A charity care approval from one New Jersey hospital can be used as proof of income at a second hospital within one year.
Law: N.J.A.C. 10:52-11.9(g)
- The Medical Debt Relief Act is named for Louisa Carman and is enforced only by the Attorney General, who can order money or property taken in violation returned.
Law: N.J.S.A. 56:11-62
Changes in 2024–2026
July 22, 2024: Louisa Carman Medical Debt Relief Act signed; its credit-reporting ban and void-debt rule took effect that day. July 22, 2025: the rest took effect (120-day wait, payment plan offer, 30-day notice, 3% interest cap, no wage garnishment under 600% of poverty, limits on debt sales and collection during insurance appeals).
Law: P.L.2024, c.48
Questions about medical bills in New Jersey
Does New Jersey require hospitals to give free or discounted care?
New Jersey has a law that requires hospitals to give free or discounted care to people with income up to 500% of the federal poverty level (the exact level depends on the hospital and your situation).
Can medical debt be reported to credit bureaus in New Jersey?
New Jersey law limits when some medical debt can be reported to credit bureaus. A health care provider or medical debt collector may not report your medical debt to a credit bureau for care received on or after July 22, 2024.
How long can a medical bill be collected or sued on in New Jersey?
A lawsuit on a contract or account must be filed within 6 years.
Can a medical debt lead to wage garnishment or a lien on my home in New Jersey?
A provider or medical debt collector may not garnish your wages for medical debt if your yearly income is less than 600% of the federal poverty level. General New Jersey limit: a wage execution may take no more than 10% of wages unless income is above 250% of the poverty level.
Do I have a right to an itemized bill in New Jersey?
As a hospital patient, you have the right to examine and get an explanation of your bill, whatever the source of payment. The Department of Health says you have the right to receive a copy of the hospital charges, an itemized bill if you ask, and an explanation, and to appeal charges and get an explanation of the appeals process.
Can I get a payment plan for a hospital bill in New Jersey?
Before any collection action, a provider or medical debt collector must offer you a reasonable payment plan. Monthly payments must be an amount you can reasonably afford, or no more than 3% of your monthly income if the creditor knows it.
More help
Nearby states
Sources
- P.L.2024, c.48, Louisa Carman Medical Debt Relief Act (N.J.S.A. 56:11-56 to -63)
- N.J.A.C. 10:52 Subchapter 11, Charity Care (NJ Department of Health copy, Feb. 27, 2026)
- NJ Department of Health: Charity Care overview
- P.L.2008, c.60 (N.J.S.A. 26:2H-12.52), limit on charges to uninsured patients
- P.L.2018, c.32, out-of-network act (N.J.S.A. 26:2SS-1 et seq.)
- NJ Department of Health: hospital patient rights
- NJ Department of Banking and Insurance: consumer inquiries and complaints
- NJ Division of Consumer Affairs: file a complaint
- New Jersey Statutes, full text (Office of Legislative Services download, Oct. 29, 2026)