Mar 30, 2009 6:29 pm US/Central
Hospital Billing Law Offers Relief To Uninsured
CHICAGO (Sun-Times Media Wire) ―
-
-
Illinois Attorney Gen. Lisa Madigan
CBS
Atty. Gen. Lisa Madigan on Monday heralded a new law that will cap hospital bills and offer significant discounts for uninsured patients in Illinois.
The Hospital Uninsured Patient Discount Act significantly reduces charges for the uninsured and prevents discriminatory pricing based on insurance status, according to a release from Madigan's office.
Currently, uninsured patients are charged dramatically higher rates for hospital services than insured patients, whose rates are negotiated by insurance companies. On average, hospitals charge the uninsured rates that exceed 200 percent over cost. The resulting financial burden is extreme and statistics show high health care costs are among the leading reasons people file for bankruptcy, the release said.
When the law goes into effect Wednesday, hospital charges to the eligible uninsured cannot exceed the cost of the services plus 35 percent. The new law also places an annual cap on the amount hospitals can collect from eligible uninsured patients, limiting it to 25 percent of family income during a 12-month period.
Those eligible must fall within 600 percent of the Federal Poverty Level ($132,300 for a family of four in 2008) at non-rural hospitals and 300 percent ($66,150 for a family of four in 2008) at rural and critical-access hospitals, the release said.
The Attorney General's office is responsible for administering and ensuring compliance. In preparation, the office has worked with hospitals to calculate each facility's cost-to-charge ratio and is working to publicize that information for patients.
The law was sponsored by State Rep. Karen May of Highland Park and State Sen. Jeff Schoenberg of Evanston, and supported by AFSCME, as well as many other organizations working to protect consumers and uninsured patients, the release said.
"This law will provide substantial relief for thousands of hard-working individuals seeking to pay their hospital bills," Schoenberg said.
"This is an issue of basic fairness," May said. "The uninsured are the only people who are billed the full sticker price for hospital care. Eligible Illinois residents will now be able to receive a hospital bill closer to what everyone else is paying."
(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
The Tattooed Ladies of Hollywood
Click to enlarge
Stumble It!
Comments