May 29, 2008

In light of inflated hospital prices charged to the uninsured, which have lead to crushing financial hardships for many uninsured families, Attorney General Lisa Madigan has drafted new legislation to provide deep discounts off of hospital charges and to cap hospital bills for eligible uninsured patients.

The Hospital Uninsured Patient Discount Act unanimously passed the Illinois House and now moves to the Senate for concurrence. The amendment signifies one of the most aggressive efforts by any state in the country to address health care accessibility and affordability for the uninsured.

The Act has the support of the Illinois Hospital Association (IHA), which recently reached an agreement with the Attorney General’s office on the terms set forth in the legislation.

The Act would provide substantial relief by dramatically cutting hospital charges for the uninsured by 35 to 65 percent; and place an annual cap on the amount that hospitals can collect from eligible uninsured patients, limiting this total amount to 25 percent of the patient's family income during a 12 month period.

Those eligible must fall within 600 percent of the Federal Poverty Level ($127,200 for a family of four in 2008) at non-rural hospitals and 300 percent of the Federal Poverty Level ($63,600 for a family of four in 2008) at rural hospitals.

The Attorney General’s office would be responsible for administering and ensuring compliance with the Act, including the development of any rules necessary for implementation and enforcement.

The Hospital Uninsured Patient Discount Act also has the support of many organizations working to protect consumers and uninsured patients, including AFSCME, SEIU, the Sargent Shriver National Center on Poverty Law, Citizen Action, and Health & Disability Advocates.