What are Income-Based Repayment Plans?

Income-based repayment plans are payment arrangements that adjust medical debt obligations according to a patient's ability to pay, typically calculating monthly payments as a percentage of discretionary income. These plans, offered by hospitals, medical providers, and some collection agencies, help patients manage healthcare debt while maintaining basic living expenses.

Why income-based repayment plans matter

• Makes debt manageable: Aligns payments with actual financial capacity
• Prevents financial hardship: Ensures medical bills don't compromise essential needs
• Reduces defaults: Increases likelihood of debt repayment through affordable payments

How Solace can help

A Solace advocate can help you negotiate income-based repayment plans with healthcare providers, provide guidance on documenting your financial situation, and ensure payment terms are sustainable. Advocates can also assist with modifying plans if your financial circumstances change.