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Your right to an interest-free hospital payment plan
If you can't pay a California hospital bill all at once, you may have the right to pay it over time — with no interest. Here's how payment plans work and how to ask for one.
You may have a right to a payment plan
Under California’s Hospital Fair Pricing Act (Health & Safety Code §127400 and following), hospitals must offer an extended payment plan to patients who qualify for charity care or discounted care — generally those with household income up to 400% of the Federal Poverty Level. If you qualify, the hospital cannot force you to pay the whole bill at once.
What a 'reasonable' monthly payment means
California law says a reasonable monthly payment is no more than 10% of your monthly household income, after subtracting essential living expenses like rent, food, utilities, transportation, and other medical bills. The payment is based on what you can actually afford — not a number the hospital picks. If you and the hospital cannot agree, the law says the hospital must set a plan that follows this 10% rule.
Your payment plan should have no interest
For patients who qualify for charity care or a discount, the hospital cannot charge interest on the payment plan. You pay back only what you owe on the discounted bill, spread out over time. Always ask for the plan in writing, and keep a copy.
If you fall behind on a payment
Missing one payment does not automatically send your bill to collections. Before a hospital can cancel your payment plan, it generally must try to reach you — by phone and in writing — and offer to work out a new plan. If your income changes, you can ask to lower your monthly payment.
How to set up a payment plan
- Apply for charity care or a discount first — your payment plan is based on the reduced bill.
- Ask the hospital's billing office for an interest-free, extended payment plan in writing.
- Offer a monthly amount that is no more than 10% of your monthly income after essential expenses.
- Get the agreement in writing before you pay, and keep every receipt.
- If money gets tighter, contact the hospital to renegotiate — don't just stop paying.
Not sure if you qualify?
Answer a few questions to see whether you qualify for charity care or a discount, and get a letter to send your hospital — free.
Check if you qualify →Cobijo Health gives you information, not legal, medical, financial, or tax advice. Results are estimates based on what you enter and public hospital policies — they are not a decision or a guarantee. Only the hospital can decide if you qualify. Cobijo is not affiliated with, endorsed by, or acting on behalf of any hospital.
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