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MD officials recommend required charity care for hospitals

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A state agency responsible for setting hospital rates has suggested that Maryland law be changed to require hospitals to expand charity care levels and give financial-assistance information to every patient.

In a new report, the Health Services Cost Review Commission recommended several changes to the state's existing rate-setting system, which was established to expand access to hospital care for poor patients. They want hospitals to be required to provide free care to any state resident whose incomes are less than 200 percent of the federal poverty level.

The report also recommends that hospitals be required to provide written notice of the availability of financial aid to every patient it serves. It also recommended that hospitals and their collection agencies be barred from adding interest or penalties to bills for uninsured patients, at least for a set period, before court judgments are entered against them.

To learn more about these recommendations:
- read this Baltimore Sun piece

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Medicaid used to the be the payer of last resort now it is hospitals..let me explain with an example..patient shows up in the emergency room as uninsured and could meet the medicaid enrollment guidelines or has dropped out of the program because they didn't re-enroll.and what if this patient does not go through the process to get enrolled/re-enrolled..so the hospital is motivated by maryland rules to treat as charity(or become the payer of last resort)..we have just told the patient you don't need to enroll (go through all that paperwork) the hospital will cover your emergency room care..charity care is not insurance..this patient will not be able to see doctors or get prescriptions filled..in this case charity care is actually bad for the patient..maybe not bad for the state since they have less funds being spent on medicaid..not bad for federal government since they have less money to spend on matching funds..and it may not be bad for the hospital because people will not attack them regarding their tax exemption..so the big loser could be the patient who continues to use the emergency room as their provider..

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