IU Health Financial Assistance: Free Care at 200% FPL + 60% Automatic Uninsured Discount (2026 Guide)
Indiana University Health (IU Health) is Indiana's largest health system, operating 16 hospitals including IU Health Methodist, IU Health University Hospital, and Riley Hospital for Children. Their financial assistance program offers 100% free charity care for patients at or below 200% FPL, sliding scale discounts at 201-400% FPL, and one of the country's most generous automatic discounts: a 60% reduction for all uninsured patients before any application is needed. With Indiana residents carrying $2.2 billion in medical debt, understanding these programs is critical.
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Quick Eligibility Summary
The 60% Automatic Uninsured Discount (Key Insight)
Before you even apply for charity care, IU Health automatically gives all uninsured patients a 60% discount on charges. This is one of the most generous automatic discounts of any major health system in the country. Here is what makes this so important:
Example: How the discounts stack
Original bill: $50,000. After 60% automatic uninsured discount: $20,000. If you then qualify for charity care at 200% FPL, the remaining $20,000 is also written off, resulting in $0 owed. Even at higher income levels, the sliding scale discount further reduces that $20,000 balance.
Who Qualifies for IU Health Financial Assistance?
100% Free Care (0-200% FPL)
Patients with household income at or below 200% of the Federal Poverty Level qualify for complete charity care. This means your entire bill is written off. For a single person in 2026, 200% FPL is approximately $31,920/year. For a family of four, it is approximately $65,600/year. This applies at all IU Health hospitals and many IU Health physician practices.
Sliding Scale Discounts (201-400% FPL)
Patients between 201% and 400% FPL qualify for discounted care on a sliding scale. The higher your income within this range, the smaller the discount, but there is still meaningful assistance available. For a single person, 400% FPL is approximately $63,840/year. Financial counselors will calculate your specific discount based on your household income and size.
Automatic 60% Uninsured Discount (All Uninsured Patients)
All uninsured patients receive an automatic 60% discount on charges regardless of income. This discount is applied before any financial assistance evaluation. Even if you do not qualify for additional charity care, this discount alone can reduce your bill substantially.
Both Insured and Uninsured Patients Qualify
You do not need to be uninsured to qualify for IU Health financial assistance. Insured patients can receive help with out-of-pocket costs including deductibles, copays, and coinsurance. The 60% automatic discount is specific to uninsured patients, but the charity care program (free care at 200% FPL and sliding scale at 201-400% FPL) is available to everyone who meets the income requirements.
Need Help with an IU Health Bill?
CareRoute can help you understand your options, draft appeal letters, and navigate the financial assistance application process. Our tools are designed to help patients advocate for themselves effectively.
Try Bill DefenseRiley Hospital for Children (Additional Programs)
Riley Hospital for Children is part of the IU Health system, so all standard IU Health financial assistance programs apply. However, Riley also has additional assistance programs through the Riley Children's Foundation that go beyond standard charity care.
What parents should know:
- Standard IU Health FA applies. The 60% uninsured discount and charity care at 200% FPL (or sliding scale at 201-400% FPL) are available at Riley just like any IU Health facility.
- Riley Children's Foundation assistance. Ask specifically about programs funded by the Riley Children's Foundation. These may cover additional costs that standard FA does not, including travel, lodging, and non-medical expenses for families.
- Ask the social work team. Riley's social workers are familiar with all available programs and can connect you with the right resources. Request a social work consult if you have not already been connected.
- Do not assume you do not qualify. Many families are surprised to learn they qualify for help. Even if your income is above the standard thresholds, Riley-specific programs may still be able to assist with your situation.
Important: When calling about Riley bills, ask for both the standard IU Health financial assistance program and any Riley Children's Foundation or Riley-specific programs. These are separate resources with separate eligibility criteria.
Indiana SB 225: Your Right to Be Screened (Key Protection)
Indiana Senate Bill 225 (signed in 2024) created an important new protection for patients. Under this law, hospitals in Indiana must screen patients for financial assistance eligibility before pursuing collections. This applies to IU Health and all other Indiana hospitals.
What this means for you:
- Screening before collections. IU Health must attempt to screen you for financial assistance eligibility before sending your account to collections or taking legal action.
- Challenge improper collections. If IU Health (or any Indiana hospital) sent your account to collections without first screening you for FA, their collection efforts may be legally challengeable. Mention SB 225 in any dispute.
- Request documentation. Ask IU Health to provide proof that you were screened for financial assistance. If they cannot provide it, you have grounds to dispute any collections activity.
Already in collections? If you have an IU Health bill that went to collections and you were never screened for financial assistance, contact Patient Financial Services at (800) 265-3220. Reference Indiana SB 225 and request that collections be paused while your FA eligibility is evaluated.
Healthy Indiana Plan (HIP 2.0) Enrollment Help
Indiana expanded Medicaid through the Healthy Indiana Plan (HIP 2.0), which uses a unique POWER Account model. Many Indiana residents qualify for HIP 2.0 but do not know it. IU Health financial counselors can help you determine eligibility and assist with enrollment.
Why HIP 2.0 matters for IU Health patients:
- If approved for HIP 2.0, your IU Health bills may be covered retroactively for up to 3 months before your application date
- HIP 2.0 covers adults ages 19-64 with income up to 138% FPL (approximately $20,783/year for a single person)
- The POWER Account model means small monthly contributions (as low as $1/month) rather than traditional premiums
- IU Health financial counselors can walk you through the application process at no charge
Tip: Even if you think you make too much for Medicaid, ask an IU Health financial counselor to check. HIP 2.0 has higher income limits than traditional Medicaid, and many patients are surprised to learn they qualify. Getting enrolled can cover both current and future bills.
On an IU Health Insurance Plan?
IU Health operates its own insurance plans in addition to its hospitals. If you are enrolled in an IU Health insurance plan and receiving care at IU Health facilities, there may be additional internal assistance available to you that is not part of the standard financial assistance program. Ask your financial counselor specifically about internal plan assistance options.
IU Health Hospitals Across Indiana
IU Health Methodist Hospital
Indianapolis
Flagship hospital and Level I Trauma Center in downtown Indianapolis
IU Health University Hospital
Indianapolis
Academic medical center affiliated with Indiana University School of Medicine
Riley Hospital for Children
Indianapolis
Indiana's only comprehensive children's hospital, with additional Foundation programs
IU Health North Hospital
Carmel
Serving Hamilton County and northern Indianapolis suburbs
IU Health West Hospital
Avon
Serving Hendricks County and western Indianapolis suburbs
IU Health Saxony Hospital
Fishers
Serving the Fishers and northeastern Indianapolis area
IU Health Bloomington Hospital
Bloomington
Regional hospital serving South Central Indiana and the IU campus community
IU Health Ball Memorial Hospital
Muncie
Regional medical center serving East Central Indiana
IU Health Arnett Hospital
Lafayette
Serving Greater Lafayette and West Central Indiana
IU Health Bedford Hospital
Bedford
Community hospital serving Lawrence County
IU Health Blackford Hospital
Hartford City
Critical access hospital serving Blackford County
IU Health Jay Hospital
Portland
Critical access hospital serving Jay County
All IU Health hospitals follow the same financial assistance policy. The 60% automatic uninsured discount and charity care program apply consistently across the system. Many IU Health physician practices also participate.
How to Apply for IU Health Financial Assistance
Confirm Your 60% Uninsured Discount (If Applicable)
If you are uninsured, check your bill to confirm the automatic 60% discount has been applied. If it has not, call (800) 265-3220 and request it. This discount is separate from and applied before any charity care evaluation.
Contact Patient Financial Services
Call IU Health Patient Financial Services at (800) 265-3220 or visit the financial counseling office at your IU Health facility. Request a financial assistance application and ask about all programs you may qualify for, including HIP 2.0 and (if at Riley) Foundation-specific programs.
Gather Your Documents
You will typically need: proof of income (recent pay stubs, tax returns, or a signed statement of no income), proof of household size, government-issued ID, and your IU Health medical bills or account numbers. Your financial counselor will confirm exactly what is needed for your situation.
Complete and Submit the Application
Fill out the IU Health financial assistance application with help from your financial counselor. Submit it with all supporting documentation. Keep copies of everything you submit. You have 240 days from your first billing statement to apply, but submitting sooner is always better.
Receive Your Determination
IU Health will review your application and notify you of the decision. If approved for free care at 200% FPL, your entire balance (after the 60% uninsured discount if applicable) will be written off. If approved for sliding scale assistance at 201-400% FPL, a percentage discount will be applied to your remaining balance.
240-Day Application Window
You have 240 days from your first billing statement to submit a financial assistance application to IU Health. While this is a generous window, do not wait until the deadline. Applying early gives you more time to gather documentation, prevents potential collections activity, and ensures your application is processed while your account is still active. If you are approaching the 240-day deadline, call (800) 265-3220 immediately to begin the process.
If Your Application Is Denied
If IU Health denies your financial assistance application, you have several options:
- 1.Request a written explanation of the denial reason. Understanding the specific reason helps you address the issue in an appeal.
- 2.Appeal the decision. Ask your financial counselor about the appeal process. Provide additional documentation or clarification that addresses the denial reason.
- 3.Confirm the 60% discount was applied. Even without charity care approval, uninsured patients should have the automatic 60% discount on their bill. Verify this is reflected.
- 4.Reference Indiana SB 225. If you were sent to collections without being screened for FA, their collection actions may be challengeable under Indiana law.
- 5.Request a payment plan. IU Health may offer interest-free or reduced payment plans even if charity care is not approved.
- 6.Contact the Indiana Attorney General if you believe the denial violates nonprofit hospital obligations. IU Health must comply with IRS 501(r) requirements as a tax-exempt organization.
Denied? Let Us Help You Appeal
CareRoute can help you draft an appeal letter, identify the right provisions to cite (including Indiana SB 225 protections), and build a compelling case for why your application should be reconsidered.
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Frequently Asked Questions
What is the IU Health 60% automatic uninsured discount?
IU Health automatically applies a 60% discount on charges for all uninsured patients. This requires no application and no income verification. It is applied before any financial assistance evaluation. After this discount, you can still apply for charity care (free at 200% FPL or sliding scale at 201-400% FPL) to further reduce or eliminate the remaining balance.
Does Riley Children's Hospital have extra financial assistance programs?
Yes. In addition to standard IU Health financial assistance, Riley Hospital for Children has programs through the Riley Children's Foundation. These may cover additional costs beyond medical bills, including travel and lodging for families. Ask Riley's social work team or financial counselors specifically about Foundation-funded programs.
What is Indiana SB 225 and how does it protect me?
Indiana Senate Bill 225 (2024) requires hospitals to screen patients for financial assistance eligibility before pursuing collections. If IU Health sent your account to collections without screening you for FA first, their collection efforts may be legally challengeable. Reference this law in any dispute with IU Health or a collection agency acting on their behalf.
Can IU Health help me enroll in the Healthy Indiana Plan (HIP 2.0)?
Yes. IU Health financial counselors can help you determine if you qualify for HIP 2.0 (Indiana's Medicaid expansion) and assist with the enrollment process at no charge. HIP 2.0 covers adults ages 19-64 with income up to 138% FPL and can even cover bills retroactively for up to 3 months before your application.
Can insured patients qualify for IU Health financial assistance?
Yes. Both insured and uninsured patients can qualify for IU Health charity care. Insured patients may receive help with out-of-pocket costs including deductibles, copays, and coinsurance if they meet the income requirements (free care at 200% FPL, sliding scale at 201-400% FPL). The 60% automatic discount is specific to uninsured patients only.
How long do I have to apply for financial assistance?
You have 240 days from your first billing statement to submit an IU Health financial assistance application. This is a generous window, but applying sooner is always better. Early applications prevent potential collections activity and give you more time to gather any additional documentation that may be needed.
What documents do I need to apply?
You will typically need proof of income (recent pay stubs, tax returns, or a signed statement of no income), proof of household size, government-issued identification, and your IU Health bills or account numbers. If you have experienced a recent financial hardship like job loss, bring documentation of that as well. Your financial counselor will confirm exactly what is required.
Is IU Health a nonprofit hospital system?
Yes. Indiana University Health is a nonprofit health system and 501(c)(3) tax-exempt organization. As such, IU Health is required by IRS Section 501(r) to maintain a financial assistance policy, make it widely available, and limit charges for assistance-eligible patients. IU Health is Indiana's largest health system with 16 hospitals statewide.
Related Guides
Indiana law provides additional protections for patients beyond what IU Health offers through its financial assistance program. Other Indiana health systems also have their own programs.
Last updated: May 2026. Information is based on publicly available IU Health financial assistance policies. Always confirm current eligibility requirements directly with IU Health Patient Financial Services at (800) 265-3220.