If you have a hospital bill in Colorado and your household income is at or below 250% of the Federal Poverty Level (FPL), you may qualify for the Colorado Hospital Discounted Care Program. As of 2026, a single adult earning up to $39,900 per year qualifies. A family of four qualifies with income up to $82,500 per year. Once approved, your monthly payment is capped at 4% of your gross monthly household income, and any remaining balance is forgiven after 36 months of payments.
Quick Answer: Colorado's Hospital Discounted Care Program (created by HB 21-1198) requires all Colorado general acute and critical access hospitals to screen patients for financial assistance. If your income is at or below 250% FPL, hospitals must cap your monthly payment at 4% of your gross monthly income, and the debt is forgiven after 36 months. As of 2026, that is $39,900/year for a single person or $82,500/year for a family of four.
What Is the Colorado Hospital Discounted Care Program?
Colorado's Hospital Discounted Care Program went into effect on September 1, 2022, created by House Bill 21-1198. It replaced and strengthened the older Colorado Indigent Care Program (CICP).
The program sets a legal floor, not just a voluntary policy. Every licensed general acute care hospital and critical access hospital in Colorado must comply. That includes large systems like UCHealth, Centura, SCL Health, Denver Health, and Intermountain Health, as well as small rural hospitals.
Unlike a charity care program that waives bills entirely, the Discounted Care Program limits what hospitals can charge based on your income. If you qualify, the hospital still gets paid, but only up to amounts you can actually afford.
The program covers emergent and elective services received at a health care facility. It applies to both inpatient stays and outpatient visits. Professional services billed separately have their own cap of 2% of your gross monthly household income.
2026 Income Limits: 250% FPL Table
To qualify for the Colorado Hospital Discounted Care Program as of 2026, your gross household income must be at or below 250% of the Federal Poverty Guidelines. The table below shows the income thresholds for households in Colorado (as part of the 48 contiguous states).
| Household Size | 100% FPL (Annual) | 250% FPL (Annual) | 250% FPL (Monthly) |
|---|
| 1 person | $15,960 | $39,900 | $3,325 |
| 2 people | $21,640 | $54,100 | $4,508 |
| 3 people | $27,320 | $68,300 | $5,692 |
| 4 people | $33,000 | $82,500 | $6,875 |
| 5 people | $38,680 | $96,700 | $8,058 |
| 6 people | $44,360 | $110,900 | $9,242 |
| 7 people | $50,040 | $125,100 | $10,425 |
| 8 people | $55,720 | $139,300 | $11,608 |
For each additional person beyond 8, add $5,680 to the 100% FPL base and multiply by 2.5 to get the 250% FPL annual limit. Alaska and Hawaii have higher FPL thresholds.
The 250% FPL limit is a statutory floor. Some Colorado hospitals voluntarily extend discounted care to patients at 300%, 350%, or even 400% FPL. Contact your hospital's billing department to ask whether they have a broader financial assistance policy that applies above 250%.
How the Billing Cap Works
Once you are approved for the Hospital Discounted Care Program, your payment plan is subject to strict limits:
Inpatient and outpatient hospital services: The hospital can charge up to 4% of your gross monthly household income per month.
Professional services billed separately (such as physician fees, anesthesiology, radiology): Each provider can charge up to 2% of your gross monthly household income per month.
Combined bills (hospital plus professional): The combined cap cannot exceed 6% of your gross monthly household income.
36-month forgiveness: Once you have made 36 monthly payments at the capped rate, the remaining balance is considered paid in full, regardless of how large the original bill was.
Here is a quick example to make this concrete. Suppose you are a single adult earning $2,500 per month (about $30,000 per year, well under the $39,900 limit). A hospital stay costs $12,000. Under the discounted care program, your maximum monthly payment is 4% of $2,500, or $100. Over 36 months, you pay $3,600 total. The remaining $8,400 is forgiven. The hospital cannot send the balance to collections or report it to a credit bureau after forgiveness.
Colorado's Other Medical Debt Protections in 2026
The Hospital Discounted Care Program is one piece of a broader set of protections Colorado has built for residents dealing with medical bills.
Medical debt and credit reports: Since August 2023, Colorado HB 23-1126 prohibits consumer reporting agencies from including medical debt on credit reports. This law is in effect through July 2028. Even before you apply for discounted care, any medical debt on your credit report in Colorado should already be removed.
Wage garnishment: Colorado HB 26-1267, which would have banned wage garnishment for medical debt entirely, was defeated in committee in 2026 by an 8-5 vote. Wage garnishment for medical debt remains legal in Colorado, but courts approved roughly 14,000 such orders per year between 2022 and 2024, predominantly targeting low-income individuals. If you qualify for discounted care and pay under the capped plan, collection activity and garnishment should not apply to covered bills.
Payment plan protections under the discounted care law: Even outside the 36-month track, HB 21-1198 limits payment plans to amounts based on income. Hospitals cannot simply demand $500/month from a patient earning $1,800/month.
Health First Colorado (Medicaid): If your income is at or below 138% FPL (about $22,125 for a single adult in 2026), you may qualify for Health First Colorado, Colorado's Medicaid program. Medicaid covers most services with zero or very low cost-sharing, which is a stronger protection than discounted care. Hospitals must screen you for Medicaid eligibility before applying the discounted care rules.
Step-by-Step: How to Apply for Colorado Hospital Discounted Care
The application process is simpler than many patients expect, because state law requires hospitals to initiate it.
Step 1: Get screened at the hospital. Colorado hospitals must screen all uninsured patients for financial assistance. If you are insured but still have a large bill after insurance, you can request screening by contacting the hospital's billing or financial counseling department. You do not have to wait for the hospital to offer.
Step 2: Complete the uniform application. Colorado HCPF developed a single Uniform Application (Version 3.3, effective April 1, 2026) used across all participating hospitals. The application asks about household size, monthly income, and current insurance status. You can complete it in person, by phone, or in writing.
Step 3: Provide income documentation. Acceptable documents include recent pay stubs (typically the two most recent), a W-2 or tax return, or a benefits letter if you receive Social Security or disability income. If you are self-employed, a recent tax return works. If you are experiencing homelessness, you may self-attest your monthly income without documentation.
Step 4: Await the determination. The hospital reviews your application and determines eligibility. If approved, you receive a written determination notice.
Step 5: Set up the payment plan. The hospital must set your monthly payment at or below the capped rate based on your gross monthly household income. Get the plan in writing, confirm the 36-month forgiveness provision applies, and keep records of your payments.
Step 6: Appeal if denied. If you believe you were wrongly denied, you have the right to appeal through the hospital and through the Colorado Department of Health Care Policy and Financing.
For existing bills: You can apply retroactively if you received services but were never screened or did not know about the program. Contact the billing department and ask to complete the uniform application even for older bills.
How the CoveredUSA Bill Analyzer Can Help
If you are dealing with a hospital bill in Colorado, the first challenge is often figuring out whether the charges are even accurate before you apply for discounted care.
The CoveredUSA Bill Analyzer compares each line item on your hospital bill against the Medicare rate, which is the standard benchmark used to detect overcharges. Medical billing errors are common: duplicate charges, services billed at a higher code than what was actually performed, and charges for items the patient never received. Catching those errors before you enter a payment plan can reduce the amount you owe in the first place, and then the discounted care cap applies to whatever is left.
Upload your hospital bill to the free CoveredUSA Bill Analyzer to find errors, overcharges, and charity care options in 30 seconds.
Which Hospitals Must Participate?
All licensed general acute care hospitals and critical access hospitals in Colorado are required to offer the Hospital Discounted Care Program. This covers hundreds of facilities, from large academic medical centers in Denver and Aurora to small rural hospitals in San Luis Valley and the Eastern Plains.
Off-campus hospital locations are also covered. If you receive services at a hospital-owned outpatient clinic or imaging center, the same discounted care rules apply.
Standalone physician offices, urgent care clinics not affiliated with a licensed hospital, and ambulance services are not covered under the Hospital Discounted Care statute. For those bills, you would need to negotiate separately or look for individual provider financial assistance programs.
What About Patients Already in Debt Collection?
If a hospital sent your bill to a collection agency before you applied for discounted care, you may still be eligible. Colorado law requires hospitals to screen patients before initiating collection action. If a hospital skipped the screening step, the collection action may be improper.
Contact the hospital's billing department and ask to complete the uniform application. If the hospital referred your account to collections without screening you, document that in writing. The Colorado Consumer Health Initiative (cohealthinitiative.org) offers free guidance for patients navigating billing disputes.
For medical debt that is already on a payment plan but the monthly amount seems unaffordable, ask the hospital to re-evaluate your plan under the discounted care income caps. Changes in income, job loss, or a new qualifying event may justify a plan modification.
Frequently Asked Questions
What is the income limit for Colorado Hospital Discounted Care in 2026?
Your gross household income must be at or below 250% of the Federal Poverty Level. In 2026, that is $39,900 per year for a single person, $54,100 for two people, $68,300 for three people, and $82,500 for a family of four. Monthly income limits are $3,325, $4,508, $5,692, and $6,875 respectively.
How much will I actually pay each month under the program?
The monthly cap depends on your income. The hospital can charge up to 4% of your gross monthly household income. For example, if your household earns $3,000 per month, the maximum monthly payment is $120. After 36 months of payments at that rate, any remaining balance is forgiven.
Does the 250% FPL limit apply to insured patients too?
Yes. The Hospital Discounted Care Program applies to both uninsured and insured patients. If you have insurance but still have a large out-of-pocket balance, you can request screening at any Colorado hospital. Being insured does not disqualify you.
Will this program cover my doctor's bill, not just the hospital bill?
Professional services billed separately from the hospital bill have a different cap: 2% of gross monthly household income per provider, per month. If your hospital and physician bills are combined on one statement, the combined cap is 6% of monthly income. If they are separate, each applies independently.
Can a hospital report my bill to a credit bureau while I am on a discounted care payment plan?
Under Colorado HB 23-1126 (in effect through July 2028), medical debt cannot be included in consumer credit reports in Colorado regardless of your discounted care status. Medical debt that was already on your credit report should have been removed.
What if I cannot afford even the capped payment amount?
If the 4% cap still represents more than you can manage, tell the hospital. Some hospitals go beyond the state minimum and offer zero-payment plans or full charity write-offs for patients with very low incomes. You can also ask whether you qualify for Health First Colorado (Medicaid), which may cover the bill entirely. Colorado expanded Medicaid to adults at or below 138% FPL.
Can I apply retroactively if I already paid the full bill?
Generally no. Once a bill is paid, there is no mechanism to recover payments made before discounted care was applied. However, if you are currently on a payment plan that was set without a proper income-based screening, you can request a re-evaluation and potentially lower future payments.
How do I find out if my Colorado hospital has a broader financial assistance policy above 250% FPL?
Ask the hospital's financial counseling department directly. Many large Colorado hospital systems voluntarily extend discounted care or charity care to patients at higher income thresholds. The state law only sets the 250% FPL floor. Hospitals are free to be more generous.
What is the CoveredUSA Bill Analyzer and how does it help with hospital bills?
The CoveredUSA Bill Analyzer is a free tool that checks your hospital bill line by line against the Medicare rate. It flags overcharges, duplicate entries, and potential billing errors. Finding and disputing errors before you apply for discounted care can lower the total amount you owe, which in turn reduces the balance subject to the 36-month repayment plan.
Sources: Colorado HCPF Hospital Discounted Care | HB 21-1198 (Colorado General Assembly) | 2026 Federal Poverty Guidelines (HHS ASPE) | Colorado HB 23-1126 Medical Debt Credit Reporting | Denver Health Hospital Discounted Care
