Hospital Billing Practices Under Consideration

The California Hospital Association and consumer advocacy groups this week have met to discuss hospital billing practices as the Legislature considers a bill (AB 774) by Assembly member Wilma Chan (D-Oakland) that deals with the issue, the Sacramento Bee reports.

The measure would require hospitals to provide uninsured patients with information about consumer rights and financial options, including:

Payment plans;
Public insurance programs; and
Hospitals' charity care policies.

Under the bill, state residents with incomes less than 350% of the federal poverty level would not have to pay hospital charges that exceed rates paid by Medi-Cal, Medicare or the state workers' compensation insurance system. The legislation would permit patients time to negotiate with hospitals about bills and bar hospitals from immediately referring bills to collection agencies.

Gov. Arnold Schwarzenegger (R) in 2004 vetoed similar legislation, saying that the state should wait to see if voluntary hospital guidelines were effective in addressing concerns about billing practices.

Margita Thompson, a spokesperson for the governor, declined to comment on Schwarzenegger's position on bills that the Legislature has not approved (Rojas, Sacramento Bee, 8/24). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.