Stevens Community Medical Center in Morris, Minnesota must provide refunds or debt reductions to approximately 3,478 uninsured patients who were charged incorrect financial assistance discounts between April 2020 and December 2025. The Minnesota Attorney General's office ordered the hospital to pay up to $1,412,776.25 in August 2026 after determining it had failed to apply required income-based discounts to eligible uninsured patients. Patients who received a letter from Stevens Community Medical Center in August 2026 should verify their eligibility and contact the hospital to apply for their refund. Those who weren't contacted but believe they qualify can reach out directly to the hospital's patient billing department to confirm their eligibility.
Table of Contents
- What Happened
- Who Qualifies
- How Refund Amounts Work
- How to Apply or Check Your Status
- Important Details About Timing
- Frequently Asked Questions
What Happened
The hospital had been applying a flat 22–25% discount to all uninsured patients without verifying their household income. However, federal and state rules required the hospital to offer an additional 19–20% discount to uninsured patients whose household income fell below $125,000. This gap meant thousands of uninsured patients received bills based on the lower discount when they qualified for a much larger reduction.
The Minnesota Attorney General announced in August 2026 that Stevens Community Medical Center agreed to correct the error and refund the difference to all affected patients. The settlement covers services provided over nearly six years.
Who Qualifies
You qualify for a refund or debt reduction if you meet all three criteria: Only patients who were completely uninsured at the time of service qualify. If you had any insurance coverage—Medicaid, marketplace plans, or employer coverage—you fall outside the settlement scope, even if you had a high deductible or copay.
- You were uninsured when you received services at Stevens Community Medical Center
- You received services between April 1, 2020 and December 31, 2025
- Your household income in the year of service was under $125,000
How Refund Amounts Work
Your refund is calculated based on the difference between the discount you received and the discount you should have received under the rules that applied to your service date. For services from April 1, 2020 through October 31, 2023, the hospital uses the Hospital Agreement discount terms. For services from November 1, 2023 through December 31, 2025, it uses Minnesota state law requirements.
The refund is applied automatically to any remaining medical debt you owe Stevens Community Medical Center. If your account is already paid in full, the hospital will send you a check for the difference.
How to Apply or Check Your Status
Approximately 3,478 patients received letters in August 2026 with instructions on how to verify their income and claim their refund. If you received a letter, follow the steps it provides and contact the hospital with any documentation of your household income from the year you received services. If you didn't receive a letter but believe you may qualify, contact Stevens Community Medical Center's patient billing department directly. They can confirm whether you were among the identified patients or help you verify your eligibility with documentation from the applicable service year.
Important Details About Timing
The settlement does not specify a deadline for when refunds must be issued or when you must apply if you received a letter. However, responding promptly to any communication from the hospital helps ensure your request is processed without delays. If your circumstances have changed since your service date—for example, if your income exceeded $125,000 in the year of service—you may not qualify for the additional discount. Keep documentation of your household income from the relevant year when you contact the hospital.
Frequently Asked Questions
What if I had Medicaid or marketplace insurance when I received services?
Only patients who were completely uninsured at the time of service qualify. Any insurance coverage, including Medicaid, makes you ineligible for this refund.
Will I get a check or will it reduce my hospital bill?
The refund is applied first to any remaining medical debt you owe Stevens Community Medical Center. If your account is fully paid, you will receive a check.