If you received care at a Banner Health hospital in Arizona and cannot pay the bill, you may qualify for partial or full forgiveness through the Banner Health Financial Assistance Program (FAP). As of 2026, the program covers patients at all income levels up to 400% of the federal poverty level (FPL), with full charity care available to households below 200% FPL. Banner Health is Arizona's largest nonprofit hospital system, and by law it must make this assistance available, but most patients never apply because they do not know it exists.
Quick Answer: Banner Health Arizona forgives medical bills 100% for households earning up to 200% FPL (roughly $43,280/year for a family of two in 2026). Discounts on a sliding scale extend up to 400% FPL. You must apply within 240 days of your first bill.
Banner Health operates more than 15 hospitals in the Phoenix metro area alone, including Banner Desert, Banner Gateway, Banner Thunderbird, Banner Estrella, and Banner University Medical Center locations in Phoenix and Tucson. The same FAP policy applies across all of them.
What Is the Banner Health Financial Assistance Program?
The FAP is a charity care program required under Section 501(r) of the Internal Revenue Code for tax-exempt nonprofit hospitals. Banner Health provides more than $153 million in charity care annually across its system. The Arizona program has three tiers:
Full charity care (100% discount): For uninsured or underinsured patients whose annual household income falls at or below 200% of the federal poverty level.
Sliding-scale discount: For patients whose income falls between 200% and 400% FPL. The exact discount percentage depends on your specific income relative to FPL and your total medical expenses.
Medically indigent assistance: For patients at any income level whose total medical expenses (Banner and non-Banner combined) exceed 50% of their annual household income. This pathway catches patients with insurance who face catastrophic bills.
2026 Income Limits: Do You Qualify?
The table below shows the 2026 income thresholds for Banner Health's two main assistance tiers. These figures are based on the 2026 federal poverty guidelines published by HHS.
Full Charity Care (Up to 200% FPL)
| Household Size | Annual Income Limit | Monthly Income Limit |
|---|
| 1 | $31,920 | $2,660 |
| 2 | $43,280 | $3,607 |
| 3 | $54,640 | $4,553 |
| 4 | $66,000 | $5,500 |
| 5 | $77,360 | $6,447 |
| 6 | $88,720 | $7,393 |
| 7 | $100,080 | $8,340 |
| 8 | $111,440 | $9,287 |
For each additional household member beyond 8, add $11,360 per year.
Sliding-Scale Discount (Up to 400% FPL)
| Household Size | Annual Income Limit | Monthly Income Limit |
|---|
| 1 | $63,840 | $5,320 |
| 2 | $86,560 | $7,213 |
| 3 | $109,280 | $9,107 |
| 4 | $132,000 | $11,000 |
| 5 | $154,720 | $12,893 |
| 6 | $177,440 | $14,787 |
| 7 | $200,160 | $16,680 |
| 8 | $222,880 | $18,573 |
Even if your income exceeds 400% FPL, you may still qualify under the medically indigent pathway if your medical bills exceed half your household income for the year.
Who Qualifies?
Banner Health covers three types of patients under the FAP:
Uninsured patients who have no third-party or government insurance. They are charged the self-pay rate and evaluated against the income thresholds above.
Underinsured patients who have insurance but face financial hardship from high deductibles, copays, or coinsurance that they cannot afford.
Medically indigent patients whose medical expenses from any provider, not just Banner, exceed 50% of their annual household income. This applies regardless of insurance status.
Arizona did expand Medicaid (AHCCCS) under the Affordable Care Act, so many low-income patients may qualify for AHCCCS first. If you do not have insurance, it is worth checking AHCCCS eligibility before applying for FAP, since Medicaid coverage would be ongoing rather than a one-time bill forgiveness. That said, the Banner FAP applies even to patients with insurance, so both paths can coexist.
Before You Apply: Check Your Bill for Errors
Before submitting a financial assistance application, it is worth taking a few minutes to review your Banner Health bill for overcharges. Hospital billing errors are common: duplicate charges, incorrect codes, and inflated line items appear on millions of bills each year.
The CoveredUSA Bill Analyzer compares each line on your hospital bill to Medicare reference rates and flags items that appear overbilled or incorrect. Uploading your Banner Health bill before you negotiate or apply for assistance gives you a clearer picture of what you actually owe and may reduce the balance further.
How to Apply: Step-by-Step
Step 1: Gather Your Documents
Collect the following before you start:
- Your Banner Health account number (from your bill or statement)
- Proof of income for all household members, using one of the following:
- Last four consecutive pay stubs (if employed)
- Federal tax return Schedule C (if self-employed)
- SSA-1099 (if retired or receiving Social Security)
- Prior year federal tax return or unemployment award letter (if unemployed)
- Self-declaration form (if no income documentation is available)
- A list of your household members (names and ages)
- Documentation of any other medical bills if claiming the medically indigent pathway
Step 2: Download or Request the Application
Go to the Banner Health website at bannerhealth.com and navigate to Patients, then Billing, then Financial Assistance. Select the Arizona region form. Applications are available in English and Spanish. You can also call Banner Patient Financial Services at (888) 264-2127 to have a form mailed to you or to get help completing it. The phone line is open Monday through Thursday 8 a.m. to 7 p.m., Friday 8 a.m. to 5 p.m., and Saturday 8 a.m. to noon (all MST).
Step 3: Complete the Application
Fill in all required sections: patient information, guarantor information, household income details, and household size. Attach your proof of income documents. Missing documentation is the most common reason applications are delayed.
Step 4: Submit by Mail or Email
Follow the submission instructions on the application form. You can submit by mail or email to the address listed on the form. Keep a copy of everything you send, including dated proof of submission.
Step 5: Follow Up Within 240 Days
This is the most important deadline. Banner Health is required to consider your financial assistance application for 240 days after your first billing statement. Even if your account has been referred to a collection agency, Banner must still review your application during this window. If your application is approved retroactively, the discount applies to the original balance.
If you are unsure whether you are within the 240-day window, call Patient Financial Services directly to confirm before submitting.
How the Sliding Scale Works in Practice
The FAP does not publish a fixed table of discount percentages by FPL tier. Instead, the amount of assistance is calculated based on your specific income relative to FPL and the total of your medical expenses across all providers. The lower your income relative to FPL, the larger your discount.
A few examples of how this plays out in practice:
- A single adult earning $24,000 per year (about 150% FPL) would likely qualify for full charity care, since that income falls below 200% FPL ($31,920 in 2026).
- A family of four earning $90,000 per year (about 273% FPL) would not qualify for full forgiveness, but could receive a meaningful partial discount.
- A family of four earning $90,000 with $60,000 in medical bills across multiple providers would likely qualify under the medically indigent pathway, since $60,000 exceeds 50% of their $90,000 income.
If Banner denies your application, you have the right to appeal. The denial letter should include instructions on the appeal process.
Does Banner Apply This to Past Bills?
Yes. Banner is required under 501(r) rules to apply approved discounts retroactively to bills incurred within the application period. If your application is approved after you have already made partial payments, the remaining balance is adjusted. If you have overpaid relative to the approved assistance level, contact Patient Financial Services to discuss your account.
Banner cannot charge FAP-eligible patients more than the amounts generally billed (AGB) to insured patients. For patients who qualify for full charity care, the amount owed is $0 for covered services.
Other Resources for Arizona Patients with Medical Debt
If you do not qualify for the Banner FAP or need additional help, consider these options:
AHCCCS (Arizona Medicaid): If your income is below 138% FPL ($22,025 for a single adult in 2026), you likely qualify for ongoing Medicaid coverage through AHCCCS. Apply at healthearizonaplus.gov or call 1-855-432-7587.
ACA marketplace plans: If your income falls between 100% and 400% FPL, you may qualify for subsidized health insurance through Healthcare.gov that would reduce future bills. Open enrollment runs November 1 through January 15 each year, with special enrollment available if you qualify.
Dollar For: A national nonprofit that helps patients navigate charity care applications at specific hospitals, including several Banner locations. They can submit on your behalf at no cost.
Arizona Attorney General: If Banner pursues debt collection while your FAP application is pending within the 240-day window, this may violate federal 501(r) requirements. Contact the Arizona AG's office if this occurs.
Upload your hospital bill to the free CoveredUSA Bill Analyzer to find errors, overcharges, and charity care options in 30 seconds.
Frequently Asked Questions
Does Banner Health financial assistance cover emergency room visits?
Yes. The FAP applies to emergency care at Banner Health facilities in Arizona, including ER visits at Banner Desert, Banner Thunderbird, Banner Estrella, and other locations. Banner's emergency care financial assistance page lists the same income thresholds as the general FAP.
Can I apply if I already have insurance?
Yes. Underinsured patients with insurance who face financial hardship from cost-sharing are explicitly covered under the FAP. You can also qualify under the medically indigent pathway if your out-of-pocket costs across all providers exceed 50% of your household income.
How long does the application take to process?
Banner Health does not publish a specific processing timeline, but most straightforward applications are reviewed within a few weeks. Complex cases or incomplete applications take longer. Submit as early as possible within the 240-day window.
What if my income is slightly above 400% FPL?
Request a review under the medically indigent pathway. If your Banner bill and other medical expenses in the same year total more than 50% of your annual household income, you may still qualify regardless of where your income falls relative to FPL.
Does Banner have a payment plan option if I do not qualify for FAP?
Yes. Banner Health offers payment arrangements for patients who do not qualify for financial assistance. Contact Patient Financial Services at (888) 264-2127 to discuss options. Interest-free and extended payment plans are often available.
Is the Banner Health FAP different from AHCCCS?
Yes. AHCCCS is Arizona's Medicaid program and provides ongoing health coverage. The Banner FAP is a one-time bill reduction or forgiveness program specific to Banner Health charges. If you qualify for AHCCCS, Banner will bill AHCCCS first. The FAP is typically used for patients who are uninsured or underinsured and do not qualify for or are not enrolled in AHCCCS.
What if my application is denied?
You can appeal the denial. The denial notice should include instructions. You can also contact Banner Patient Financial Services to ask what documentation would change the outcome, then resubmit within the 240-day window.
Does the Banner FAP cover physician fees billed separately?
It depends. Some physicians who treat you at a Banner facility bill separately under a different entity. The Banner FAP covers Banner-billed services, which typically includes hospital facility fees. Physician fees from independent medical groups may not be covered and would need to be addressed separately with those providers.
