Amounts generally billed (AGB)
Updated September 30, 2026
Definition
A limit for nonprofit hospitals based on what insured patients usually pay. If you qualify for financial assistance, the hospital can't charge you more than this for emergency or medically necessary care.
Amounts generally billed (AGB) is a federal limit for nonprofit, tax-exempt hospitals. It reflects what the hospital usually gets paid for the same care when a patient has insurance. Hospitals figure it from claims insurers paid over a past 12-month period, or from what Medicare or Medicaid would pay.
If you qualify under the hospital's financial assistance policy, it can't charge you more than AGB for emergency or other medically necessary care. For other care the policy covers, it must charge you less than its full price. The policy explains how the hospital figures AGB.
For example, say a hospital's AGB is 40% of full charges and your full charges are $10,000. If you qualify, the most it can charge you is $4,000. Some policies give bigger discounts or free care. See our guide to hospital charity care.
Related terms
Guides that use this term
- GuideHospital charity care: do you qualify and how to applyHospital charity care can lower or cover your bill. See who qualifies, the 2026 poverty guidelines, your rights at nonprofit hospitals, and how to apply.
- GuideHow to negotiate a hospital bill (what to say, what to ask for)Learn how to negotiate a hospital bill: what to check first, what to ask for, how to use the hospital's own posted prices, and a script you can use today.
Sources
- Limitation on charges - section 501(r)(5), Internal Revenue Service. Accessed September 30, 2026.
- Financial assistance policies (FAPs), Internal Revenue Service. Accessed September 30, 2026.
This is general information, not legal or medical advice. Rules can depend on your plan and your state. Romi Care isn't an insurer, law firm, collection agency, or government program.