Officials from MacNeal Hospital in Berwyn say they are on board with a new law that took effect last week that reduces the amount hospitals can charge uninsured residents for medical care.

The law, called the Hospital Uninsured Patient Discount Act, “prevents discriminatory pricing based on a patient’s insurance status” by reducing medical costs for eligible patients and providing annual caps for the amount a hospital can collect from uninsured Illinois residents, Illinois Attorney General Lisa Madigan said in a statement last week.

“Uninsured patients are currently charged dramatically higher rates for hospital services than insured patients, whose rates are negotiated by insurance companies,” Madigan said in a release.
On average, hospitals charge uninsured patients rates that exceed 200 percent over cost, Madigan said.

However, under the new law, hospitals can only charge eligible uninsured hospital patients the cost of services plus 35 percent. Additionally, they cannot collect more than 25 percent of the patient’s family income in a 12-month period.

Eligible uninsured patients are those whose family income falls within 600 percent of the Federal Poverty Level, or $132,300 for a family of four in 2008.
Local hospitals said they are in favor of the new law.

“MacNeal Hospital supports the enactment of this legislation to help the uninsured as part of our strong and continuing commitment to serve patients and communities including the uninsured,” said Brian Lemon, Chief Executive Officer of MacNeal Hospital.

An Adventist Midwest Health spokeswoman said the hospital group, including Adventist La Grange Memorial Hospital, has “a longterm history of providing charity care and uninsured discounts” and will comply with all new state regulations.

“The new law will further enhance our ability to offer this service to our neediest patients,” said Lisa Parro, a spokeswoman for Adventist Midwest Health.

Adventist suburban Chicago hospitals provided about $100 million in community benefit in 2008, Parro said, including about $29 million (including nearly $3 million in charity care and services) at Adventist La Grange Memorial Hospital.

As rising unemployment leaves more Illinois residents without health insurance, an Illinois Hospital Association official said the law comes in the nick of time.

“With growing numbers of people becoming unemployed and uninsured in the current economic crisis, this law meets a societal need that is more critical than ever,” said IHA President Ken Robbins.

The bill was sponsored by Rep. Karen May, D-Highland Park, and Sen. Jeff Schoenberg, D-Evanston.

FAQs
Who is an uninsured patient?
Uninsured patients are Illinois residents who are not covered under any third party coverage of any kind, including high deductible plans, workers’ compensation, accident liability insurance, or other third party liability.
What’s not covered?
Cosmetic surgeries, social and vocational services, outpatient procedures under $300, hospital-based physician services.
Are immigrants covered?
Yes, as long as they can verify Illinois residency and meet the income and medical necessity criteria.
Source: Illinois Hospital Association