MHS Modified Payment and Waiver Program: Implementation Timeline

Program Timeline

Recommended Content: MHS Modified Payment & Waiver Program FAQs
This page contains a series of frequently asked questions. You can use the search bar below to explore additional FAQ pages.
Q1:

When can I apply for the MHS Modified Payment and Waiver Program?

A:

You must apply within 90 days of receiving your medical bill. We're launching the program on March 9, 2026.

Q2:

How long will it take between applying for relief and receiving an updated bill?

A:

Applications will be processed within approximately 30 days.

Q3:

If my bill is still too high after I get a discounted medical bill via the MHS Modified Payment and Waiver Program, can I request a payment plan?

A:

Yes. The application form allows you to request a voluntary payment agreement. Payments may be spread out for up to 72 months interest free.

Q4:

What happens if I’m set up on a payment plan and miss a payment?

A:

If you miss a payment and your account becomes more than 180 days delinquent, your account will be transferred to the Department of the Treasury’s collections program. The Treasury will assess interest on late payments and may impose administrative wage garnishment to collect the debt.

Q5:

How do I apply for a medical debt waiver?

A:

To be eligible for the waiver program, you must first apply for the discount program. After receiving your discounted bill, you may then apply for a waiver of the remaining balance by submitting Request for Medical Debt Discount, Military Health System Modified Payment and Waiver Program (DD Form 3201).

The rule mentions a 1099-C form. Will I have to pay income tax on the amount of debt that is waived, and when will I receive the 1099-C?

If your application for waiver is approved for $600 or more, that amount will be reported to the Internal Revenue Service, and you'll be issued a form 1099-C. We advise individuals to consult with a tax professional regarding their specific circumstances.