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Military Health System launches new financial relief program for civilian patients

Image of Rachael Smith, a certified occupational therapist assistant, works with a patient at the Outpatient Occupational Therapy Clinic. Rachael Smith, a certified occupational therapist assistant, works with a patient at the Outpatient Occupational Therapy Clinic at Walter Reed National Military Medical Center in Bethesda, Maryland, Feb. 25, 2026. The Military Health System launched the Modified Waiver Payment Program March 9, 2026, to give eligible civilian, non-beneficiary patients financial relief for care at a military hospital or clinic.

3/16/2026 By: Robert Hammer, MHS Communications

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Receiving an unexpected medical bill can be a stressful experience. That is why the Military Health System is launching the Modified Payment and Waiver Program, a new, congressionally mandated financial safety net for civilian patients (non-beneficiaries) treated at military hospitals and clinics.

The program applies to all care provided on or after June 21, 2023, and is designed to provide significant financial relief to those who need it.

"Our military medical teams provide lifesaving care to civilians every day, and that care should not add financial worry,” said Keith Bass, assistant secretary of war for health affairs. "This program is one way we ensure every patient is met with compassion at every step of their experience. If you are facing hardship because of a medical bill from one of our facilities, we are here to support you."

The MPWP was established by the National Defense Authorization Act for Fiscal Year 2023 to reduce the burden of medical debt. It provides two main pathways for relief:

  • Income-based assistance: This is the primary path. A sliding fee scale offers significant discounts for households with incomes up to 400% of the Federal Poverty Guidelines. A catastrophic fee waiver provides a hard cap on out-of-pocket costs for households with incomes between 401% and 600% of the Federal Poverty Guidelines, protecting them from overwhelming medical bills.
  • Discretionary Knowledge, Skills, and Abilities, or "KSA," waiver: After income-based relief is applied, patients may be eligible for an additional waiver when their care is recognized as having supported the readiness of the military medical team through development of key knowledge, skills, and abilities.

For patients with health insurance, the military hospital or clinic will always bill the insurer first. Patients can then apply for financial relief for any remaining balance, such as copayments, deductibles, or co-insurance. Approved balances can be paid through interest-free payment plans for up to 72 months.

The MHS is committed to making this process as transparent and accessible as possible. A public website is now available at www.health.mil/MPWP with frequently asked questions, detailed factsheets, and a Discount Calculator to help patients immediately estimate their eligibility for relief.

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