Medical bills in New York: free care, credit reports and your rights
New York has a law that requires hospitals to give free or discounted care to people with income up to 400% of the federal poverty level.
New York law bans medical debt from credit reports.
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 York?
New York has a law that requires hospitals to give free or discounted care to people with income up to 400% of the federal poverty level.
| Income (% of poverty level) | What you get | Details |
|---|---|---|
| Up to 200% | Free care | If your income is below 200% of the federal poverty level, the hospital must waive all charges. No nominal payment may be collected. |
| 200% to 300% | Discount | If your income is between 200% and 300% of the federal poverty level, the hospital may collect no more than a sliding-scale amount that rises with income, up to 10% of what Medicaid would have paid for the same services (if you are underinsured, up to 10% of your insurance cost sharing). |
| 301% to 400% | Discount | If your income is between 301% and 400% of the federal poverty level, the hospital may collect no more than a sliding-scale amount that rises with income from 10% up to 20% of what Medicaid would have paid (if you are underinsured, up to 20% of your insurance cost sharing). |
These are the income levels written in the law. Each hospital decides using its own policy.
- The law
Hospital Financial Assistance Law (Public Health Law 2807-k(9-a))
- Which hospitals
All general hospitals licensed by the New York State Department of Health, including for-profit and public hospitals, whether or not they take part in the state's Indigent Care Pool. Facilities licensed only by other state agencies (such as the Office of Mental Health) are not covered.
- Who can get help
People without health insurance, underinsured people (out-of-pocket medical costs in the past 12 months above 10% of gross yearly income), and people who have used up their insurance benefits, who show they cannot pay full charges.
- The most you can be charged
If your income is below 400% of the federal poverty level, the hospital may not charge you more than Medicaid would have paid for the same services, reduced further by the income levels above.
- Deadline to apply
No deadline. You may apply at any time, including during the collection process.
- Find a hospital's policy
Law: N.Y. Public Health Law 2807-k(1)(h), (9), (9-a)
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 York law.
Is my debt too old in New York?
| Kind of agreement | Time limit to sue |
|---|---|
| Written contract | 6 years |
| Oral (spoken) agreement | 6 years |
| Medical debt (set by statute) | 3 years |
A hospital or a licensed health care professional must sue on a medical debt within 3 years of treatment. A lawsuit arising out of a consumer credit transaction must be filed within 3 years. Other contract claims, written or not, have 6 years.
- What can restart the clock
For consumer credit transactions, once the 3 years have run out, a later payment, a written or spoken promise or other activity on the debt does not revive or extend the time. In general, a promise or acknowledgment counts only if it is in writing and signed by you.
- When the clock starts
For medical debt owed to a hospital or licensed health care professional, the 3 years run from the date of treatment.
Law: N.Y. CPLR 213(2), 213-d, 214-i; N.Y. General Obligations Law 17-101
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 York?
- Credit reports
Full ban
Hospitals, licensed health care professionals and ambulance services may not report any part of a medical debt to a credit bureau, and their contracts with collectors and debt buyers must forbid it.
- Waiting rules
Wait before collections: 180 days after the first bill
Wait before a lawsuit: 180 days after the first bill
A hospital or its collection agent may not sue you or hand your bill to a debt collector until at least 180 days after the first bill after your care, and not until the hospital has made reasonable efforts to find out whether you qualify for financial assistance. The hospital must give you written notice, including on a bill, at least 30 days before it refers a debt to collections. It may not send your account to collections while it is deciding a complete financial assistance application. A collection agency must get the hospital's written consent before suing.
- Interest
At most 2% a year
In a lawsuit over a consumer debt (including medical debt) against a person, interest on the judgment or claim is limited to 2% a year. Hospital installment plans under the financial assistance law may charge no more than 2% interest, and a missed payment may not trigger a higher rate.
- Liens on your home
No property lien may be entered or enforced against your primary home on a medical debt judgment won by a hospital or a licensed health care professional. Hospital policies must also forbid the forced sale or foreclosure of your primary home to collect a medical bill.
- Wage garnishment
Your wages cannot be garnished at all on a medical debt judgment won by a hospital or licensed health care professional. For other judgments, New York's general limit (no more than 10% of gross income, and less for low earners) is stricter than federal law.
- Selling the debt
A hospital may not sell medical debt to a third party unless the buyer is buying it to forgive the debt.
- Lawsuit rules
A hospital may not sue patients whose income is below 400% of the federal poverty level. In any lawsuit by or for a hospital over medical debt, the complaint must include a sworn statement by the hospital's chief financial officer that, based on reasonable efforts, the patient's income is not below 400% of the poverty level. Hospitals may not collect from patients who were eligible for Medicaid at the time of service for services Medicaid covers, and may not deny medically necessary care because of an unpaid bill.
Law: N.Y. Public Health Law 2807-k(9-a)(d), (h), (l); N.Y. CPLR 5004, 5201(b), 5231(b)
Payment plans and interest in New York
- Hospitals must offer a payment plan
- Monthly payment limit: 5% of your monthly income
A hospital's financial assistance policy must offer installment plans for balances owed under it. The monthly payment may not be more than 5% of your gross monthly income. Interest on the unpaid balance, if any, may not exceed 2%, and the plan may not raise the rate if you miss a payment. A required deposit for non-emergency care must count toward your financial aid.
Law: N.Y. Public Health Law 2807-k(9-a)(d)
Surprise bills and ambulance bills in New York
- State law
New York Emergency Medical Services and Surprise Bills Law (Financial Services Law Article 6)
- Which plans it covers
Health insurance, HMOs, nonprofit plans, student health plans and municipal cooperative plans regulated by New York State. Starting August 26, 2026, the state employee plan (NYSHIP) is also included.
- What it adds
If you are insured, an out-of-network provider may bill you only your in-network cost sharing for emergency care (including inpatient care after an emergency room visit) and for a surprise bill: out-of-network care at an in-network hospital or surgery center, or a referral to an out-of-network provider without your written consent.
- Ground ambulance
The state protects you
If you have a state-regulated plan with comprehensive coverage, it must cover emergency ground ambulance services, its payment is payment in full, and the ambulance service may bill you only the copay, coinsurance or deductible under your policy.
Law: N.Y. Insurance Law 3216(i)(24), 3221(k)(15), 4303(aa)
Law: N.Y. Financial Services Law 603, 605, 606, 607
Itemized bills and price estimates in New York
New York law gives you a right to an itemized bill.
As a hospital patient, you have the right to receive an itemized bill and an explanation of all charges, and to examine and get an explanation of your bill no matter who pays it.
Law: 10 NYCRR 405.7(b)(19), (c)(16)
Price estimates
A doctor or other health care professional who is not in your plan's network must tell you before non-emergency care that you can ask for the amount or estimated amount they will bill you, and must give it to you in writing if you ask. Hospitals must post their standard charges and the plans they take. A hospital or provider may not require a credit card on file or credit card pre-authorization before emergency or medically necessary care.
Law: N.Y. Public Health Law 24; N.Y. General Business Law 519-a
Health coverage and Medicaid in New York
New York Medicaid is New York's Medicaid program. Apply for it here:
Where to complain in New York
- Hospital bills and financial assistance: New York State Department of Health, Hospital Financial Assistance Law (HFAL)
A hospital did not follow the financial assistance law, for example it denied help it should have given, did not use the state application, or sued or sent you to collections against the rules. - Health insurance: New York State Department of Financial Services (DFS) · (800) 342-3736
Problems with a state-regulated health plan, a surprise bill or an emergency bill, or to start the state independent dispute resolution process. - Attorney general: New York State Attorney General, Health Care Bureau and consumer helpline · 1-800-771-7755
A credit bureau, hospital, health care provider or ambulance service reported medical debt, a provider broke the medical credit card rules, or another consumer problem with a business or debt collector.
Free help in New York
Free tools, letters and checklist
Good to know in New York
- Hospitals may not sue patients whose income is below 400% of the federal poverty level, and a hospital lawsuit must include a sworn statement from the hospital's chief financial officer about the patient's income (N.Y. Public Health Law 2807-k(9-a)(h)).
- A hospital or health care provider may not fill out any part of a medical credit card or medical loan application for you (N.Y. General Business Law 349-g).
- Each time you pay a medical bill with a credit card, the provider must tell you that you give up medical debt protections, such as limits on wage garnishment, liens, credit reporting and interest (N.Y. General Business Law 519-a; Department of Health letter of April 14, 2025).
Changes in 2024–2026
December 13, 2023: the Fair Medical Debt Reporting Act banned reporting medical debt to credit bureaus (Public Health Law 4925-4927; General Business Law 380-j). October 20, 2024: amendments to the hospital financial assistance law took effect for services on or after that date (income levels up to 400% of poverty, underinsured patients, no application deadline, no asset test, uniform application, 5% payment cap, no lawsuits under 400%, limits on debt sales), along with new medical credit card and credit-card-on-file rules (Public Health Law 18-c; General Business Law 349-g, 519-a). August 26, 2026: the surprise bill law was amended to include the state employee plan and new payment benchmarks (Financial Services Law 603).
Questions about medical bills in New York
Does New York require hospitals to give free or discounted care?
New York has a law that requires hospitals to give free or discounted care to people with income up to 400% of the federal poverty level.
Can medical debt be reported to credit bureaus in New York?
New York law bans medical debt from credit reports. Hospitals, licensed health care professionals and ambulance services may not report any part of a medical debt to a credit bureau, and their contracts with collectors and debt buyers must forbid it.
How long can a medical bill be collected or sued on in New York?
A hospital or a licensed health care professional must sue on a medical debt within 3 years of treatment. A lawsuit arising out of a consumer credit transaction must be filed within 3 years.
Can a medical debt lead to wage garnishment or a lien on my home in New York?
Your wages cannot be garnished at all on a medical debt judgment won by a hospital or licensed health care professional. For other judgments, New York's general limit (no more than 10% of gross income, and less for low earners) is stricter than federal law.
Am I protected from ground ambulance bills in New York?
If you have a state-regulated plan with comprehensive coverage, it must cover emergency ground ambulance services, its payment is payment in full, and the ambulance service may bill you only the copay, coinsurance or deductible under your policy. Transfers between facilities are covered only if your policy covers them.
Do I have a right to an itemized bill in New York?
As a hospital patient, you have the right to receive an itemized bill and an explanation of all charges, and to examine and get an explanation of your bill no matter who pays it.
More help
Nearby states
Sources
- N.Y. Public Health Law 2807-k (official NY Senate laws PDF)
- NYS Department of Health: Patient's Financial Aid Law
- NYS Department of Health letter to hospitals on financial assistance (April 14, 2025)
- N.Y. Public Health Law 4925-4927 (medical debt reporting)
- N.Y. General Business Law 380-j
- NY Attorney General: Medical debt
- N.Y. CPLR 213-d
- N.Y. CPLR 214-i
- N.Y. CPLR 213
- N.Y. CPLR 5004
- N.Y. CPLR 5201
- N.Y. CPLR 5231
- N.Y. General Obligations Law 17-101
- N.Y. Financial Services Law 603, 606
- N.Y. Insurance Law 3216
- N.Y. Insurance Law 4303
- N.Y. Public Health Law 24
- N.Y. General Business Law 349-g
- 10 NYCRR 405.7 Patients' rights
- DFS: Surprise medical bills
- Community Health Advocates