1. Yes , if the paperwork is done correctly. My SIL was trying to pay off a hospital stay. Then another stay happened in a different hospital. She just could not manage another bill. After much urging, she went in and discussed the problem with billing. Was given paper work and instruction how to fill out. Bill was forgiven. Another person had the amount that medicare did not cover forgiven. Both of these people were low income families that needed that help.
2. So have faith that they will help you with the charges.

Be prepared to show them your last tax returns and perhaps a current bank statement which shows your disability payment. It is great that your hospital has this policy.

My local hospital automatically offers a 10% discount for any copay/coins/deductible amount that is paid within 10 days of being billed to you. All you have to do is ask for it when paying in full by phone. Saves them lots of money in repeat billing.

Check your insurance for the maximum out of pocket amount. That will also play into what/if the hospital is willing to write off.

Check to see whether the written off amount might be subject to income tax.

Why would the "written off amount" be subject to income tax? Never heard of that and at least 50% of my job is dealing with health care providers and insurance companies.

Are you on Medicare or Medicaid disability? They usually write off any balance after Medicare/Medicaid (and any secondary insurance) payments.

I'm working with a file today that had 65,000.00 in medical bills. Medicare paid about 13,000.00 and his secondary insurance paid 900 and something dollars. Every provider (12 or 13 of them) "adjusted" the balance to zero.

"Check to see whether the written off amount might be subject to income tax."

Lucille is correct. Once the situation is resolved, the tax consequence should be checked by a knowledgeable person with possession of all the facts. There are a few exceptions and perhaps one may apply in whole or in part, but the normal rule is that when debt is cancelled without full repayment, the amount forgiven is treated as regular income subject to tax.

Thank you for your replies. Here's the scoop.

I was working full time & went out on short term disability on 1/27/16.

On 8/1/16 my short term disability ran out & I went on long term disability thru my employer.

On 8/1/16 my employer fired me & said they can't hold my job anymore. BUT I still keep my long term disability.

The long term disability company has a 3rd party vendor to assist in getting social security disability filed & approved as once social security disability starts paying that will save the long term disability company money.

So this 3rd party company has an 85% success rate getting people on social security disability the first time because no mistakes are made & they also have attorneys on hand if necessary.

My current status is on long term disability waiting for social security disability to approve me. But it's still a fixed income & I can show the hospital my approval letters if necessary.

I'm not on Medicaid. My disability check is $20 more than their maximum allowance so I don't qualify.

Fortunately I have COBRA insurance. But here's the blessing in disguise. For the first year on COBRA my employer is still paying their percentage & I pay the same as if I was an employee which is $60 a month.

That price only lasts for a year and then the COBRA goes to $599 a month. I've looked at the Obama coverage and the premium for a good plan I need is $700 a month. So I'll have worries next year. But for now I'm enjoying my discounted 12 months of COBRA.

We just met our deductible and now it's time to for open enrollment, so after January we'll have to meet it again. We decided to go with lower deductible since it seems I'm always in the emergency for my high blood pressure. So instead of 191 coming out of my pay, well have 391 per pay. I'm hoping next year will be better.

Pawprint, you should check and see if you qualify for Medical Assistance.

I did & I do. Thank God.

I also told the vet I was on disability and a fixed income & they cut Logans bill in 1/2 for me.