Understanding Required Financial Assistance in Medical Care

Abstract

Many consumers struggle to afford the costs of essential medical services. To bring more focus to the impact of medical bills and collections on consumers, the Consumer Financial Protection Bureau (CFPB) is releasing reports and blogs over the next several months discussing the key financial hurdles the health care system presents to patients and their families. In this research brief, we discuss required financial assistance (also known as charity care), one of the main forms of assistance hospitals offer to low-income consumers to help cover the cost of medical treatment.1 In the following, we define required financial assistance, explain its sources of funding, who is eligible, and who its likely beneficiaries are. In forthcoming briefs, we intend to discuss the pitfalls of medical credit cards and installment payments in the medical payment space.