Debts for Medical Services

You must include exemption claim language in all notice letters for medical services claims. You can find this language in our Sample Medical Notice letter.     

“You may be exempt from Revenue Recapture if your income at the time of medical service was below poverty guidelines for medical debts. (See Minnesota Statutes 270A and 290.067.)”

Medical service debts are exempt from Revenue Recapture if the debtor's income was below Poverty (Medical) Income Guidelines at the time of the medical service. (See Minnesota Statute 270A.03 and Minnesota Rules 8165.0300.)

Debtors must provide their federal tax return and all sources of income for the tax year they received the medical service to the claimant agency. Use the chart in the Poverty (Medical) Income Guidelines section to determine if the debtor qualifies.

For this purpose, income is the debtors' federal adjusted gross income plus any of the following income for both spouses:

• Non-taxable income
• Cash public assistance and relief
• Pension or annuity and all payments received under the Social Security Act
• Workers’ Compensation
• Disability income
• Lump-sum distributions
• Other income as defined in Minnesota Statute 290.067, subdivision 2a. 

Listed are the Poverty (Medical) Income Guidelines. We base current year data on Federal Poverty Guidelines and adjusted by state guidelines. (See Minnesota Statute 270A.03, subd 5). 

Note: If the debtor is married, include both spouses' income when applying these guidelines, unless they are legally separated.