New California Law
In an effort to protect uninsured and those patients at the lowest income levels, California is enacting some new laws that will apply to all licensed, general acute-care hospitals, with some exceptions for rural hospitals and will become effective January 1, 2007.
The details are as follows:
ELIGIBILITY: Uninsured patients who earn up to 350% of the federal poverty level or low-income patients whose out-of-pocket medical expenses exceed 10% of their annual income
REQUIRES HOSPITALS TO: Maintain written policies; post charity-care policies publicly; provide patients with written notice of discounts, payment plans and public insurance programs; provide copies of their policies to state regulators; wait at least 150 days before pursuing civil action against an eligible patient for nonpayment or reporting a patient to a credit-reporting agency; and reimburse any patient who is overcharged
PROHIBITS HOSPITALS FROM: Charging eligible patients more than what government-sponsored insurance programs pay; sending an unpaid bill to collections as long as the eligible patient is making a good-faith effort to pay; garnishing an eligible patient's wages to collect on unpaid bills; placing a lien on an eligible patient's home; and charging interest on extended-payment plans
Source: Summary of California Assembly Bill 774, Modern Healthcare reporting and Modern Healthcare
This is far different than what has occurred historically in many hospitals. Patients without insurance used to be charged full fees for services and then some hospitals would give discounts off the full charge. These discounts were often far less than the write-offs that insurance companies received and these patients had bills that were extremely large. Many unable to pay would be sent to collections or have legal actions taken against them.
Private insurers would off-set the losses from charity care in the past, but this will prevent that from happening as well. Eventually, we will get to the point where the charges actually reflect the true cost and cost-shifting ceases.
posted by Anonymous at 6:15 AM
4 Comments:
Looks like the healthcare system, (Physicians included) are going to really be in trouble now. The Democrats are well known for taking care of the many, many people that want a free handout, not working and letting the government provide for their well-being. This in turn will soon filter down to the hospitals, & Doctors, which will up the charges to the people that try to take charge of their own healthcare. I for one am tired of taking care of other people that expect a free handout.
I don't agree with you pessimism anon 11:44. If the Dems get as many people as possible into a healthplan, that will be good. However, hospitals and specialists also need to improve their cost/outcomes, not just get more reimbursement. Primary care docs need to be incentivized to be better shoppers for specialist and hospital care for their patients.
anon 12:00, you failed to explain just who will pay for all these people that the Dems are going to get into a healthplan.
Granted it might be a good thing if it gets them all off the couch and has them paying income taxes and being held accountable for their own destiny. But I can tell you from my own observations there are people that were destitute 60 years ago and their offspring and grandchildren are destitute today.
Working people will be the ones made to pay.
I agree healthcare does need an overhaul, but the Democrats are not the ones that will do it. They will just add to the problems.
You might think I'm a pessimist but
past history has proven that more free programs originated under Democratic rule than Republican. We have come to far to backslide now. I learned at an early age, there is nothing free, without someone paying for it.
All of these people that you speak of getting healthcare either are going to have to go to work or we will be paying for it which brings me back to my statement. "I object to paying other peoples bills."
I agree Doctors and Hospitals need to improve, they too had somewhat
of a free rein in passing costs on, to the patient and their Insurance companies. I think under the present Administration (Republicans) this was starting to be addressed. I usually do not discuss politics because quite frankly, I am an Independent (someone that listens to both sides and trys to make an intellegent decision based on my own beliefs and not the rhetoric of Politicians)
Look at what the state of Massachusetts has done. A national system wouldn't have to be identical but that may be a good starting point
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