Arizona

Federal FAP only

No charity-care income floor. Arizona expanded Medicaid (AHCCCS). Prop 209 tightened wage garnishment. Medical-debt interest is capped at the lower of the 1-year Treasury rate or 3% (A.R.S. § 44-1201, Prop 209).

I.R.C. § 501(r); Ariz. interest cap on medical debt · compiled October 2026

Rule	This state
Free-care floor	—
Discount / eligibility floor	—
Covers insured patients	Yes, if they otherwise qualify
Which hospitals	Nonprofit / 501(c)(3) hospitals via federal 501(r)
Medicaid expansion	Yes — adults to 138% FPL
Screen before collections	Not required by state law
Credit reports	No state ban
Debt sales	Not banned
Home liens	Not banned
Wage garnishment	Tighter than the federal 25% cap
Interest on medical debt	Capped near 3%
Collection hold	No extra state waiting period
Lawsuit clock	6 years · Ariz. Rev. Stat. § 12-548

2026 poverty line here

Alaska and Hawaii use their own HHS tables. Everyone else uses the 48-state and D.C. figures, effective January 2026.

Household	100%	Free floor	Discount floor
1	$15,960	—	—
2	$21,640	—	—
3	$27,320	—	—
4	$33,000	—	—
5	$38,680	—	—
6	$44,360	—	—

What to do

01 Apply for the hospital FAP and AHCCCS if household income is near 138% FPL.
02 Itemize first. Arizona has no write-off statute, so the hospital’s own FAP is the lever.
03 If a collector adds interest, demand the statutory medical-debt cap.
04 Prop 209 reduced how much of a paycheck a judgment can take. Do not volunteer a bank draft.

Appeals

Federal No Surprises Act. Arizona has surprise-billing rules for some out-of-network care that sit alongside NSA.

Insurance: Arizona Department of Insurance and Financial Institutions — external review

Medicaid: AHCCCS fair hearing.

Medicare is federal regardless of state: redetermination, reconsideration, ALJ, Appeals Council, then district court.

Cite this in a letter

I request a FAP determination under Internal Revenue Code section 501(r). I also note Arizona’s limits on medical-debt interest and garnishment.

Put a Arizona bill in the machine.

The estimate will use this state’s floors. The letters will cite I.R.C. § 501(r); Ariz. interest cap on medical debt.

Start a Arizona case

Arizona Attorney General

Federal overlay — every state

501(r)
501(c)(3) hospital organizations must publish a Financial Assistance Policy, a plain-language summary, and generally may not take extraordinary collection actions (selling the debt, reporting it, liens, lawsuits) until they have made reasonable efforts to determine FAP eligibility.
Official source
No Surprises Act
Emergency services, air ambulance, and many out-of-network clinicians at in-network facilities cannot balance-bill beyond in-network cost-sharing. Independent dispute resolution is between the plan and the provider — not a reason to pay the sticker rate.
Official source
FDCPA
15 U.S.C. § 1692g. Within 30 days of first collector contact, demand validation. Until it is validated, the collector should stop collecting. Partial payment can restart a state’s statute of limitations.
Official source
EMTALA
Emergency departments must screen and stabilize regardless of ability to pay. An ER bill is not an agreement that chargemaster rates are the cash price.
Official source
Medicare appeals
Five levels: redetermination (MAC, 120 days), reconsideration (QIC), ALJ at OMHA, Medicare Appeals Council, then federal district court. A remaining patient balance is often a claim the provider still needs to work.
Official source
Credit bureaus
The CFPB’s 2025 medical-debt reporting rule was vacated in July 2025. Industry practice still generally omits paid medical collections and unpaid balances under $500. Unpaid medical debt over $500 can appear after a delay unless a state ban applies. FCRA-preemption fights over those state bans are ongoing.
Official source

Sources

Official government sources for the Arizona information on this page. UNDUE does not represent any government entity.