Millions of New Yorkers now have new rights to discounted hospital care, a press conference by the New York Immigration Coalition announced this week. A new ruling forces hospitals in the state to provide health care to people who are uninsured or underinsured at discounted or very low rates.
The ruling is particularly important for those who struggle to afford medical care given the high rates of health insurance and medical services. The new law went into effect January 1, 2007, and comes after advocates pressed the state to address the growing crisis of patient debt and aggressive hospital bill collection practices.
Hospitals must offer discounts on the full range of services that a patient may need, from emergency care, surgery, and post-operative care, to diagnostic tests and treatment in clinics. Every hospital will now have to inform patients about how much aid is available to them. A person who does not have insurance and qualifies under up to 300 percent of poverty level ($10,000 for an individual) will be expected to pay a minimal fee, which is being assessed by the State Department. This includes all procedures at the hospital.
The rule applies to all general hospitals in New York. It also applies to satellite offices of all the hospitals. “This is a revolutionary change that makes hospital care more affordable. We expect to see better health and healthier finances for millions of New Yorkers,” said Adam Gurvitch, director of health advocacy with the New York Immigration Coalition, an advocacy group that brings together diverse immigrant groups to work on policy issues of shared concern.
Hospitals in New York receive nearly $1 billion each year from the state to cover the costs of caring for uninsured or underinsured patients, but they have not been held accountable for these funds, until now.
Pete Grannis (D-Manhattan), chairman of the State Assembly’s Insurance Committee and author of the legislation, said, “Private hospitals receive the largest share of the state’s uncompensated care payments. In order to access these funds in the future, each hospital will have to prove that it offers sufficient discounts, helps patients get financial assistance, and refrains from unreasonable bill collection practices.”
The law requires hospitals to send a copy of their financial assistance policy to the Department of Health by April 1, 2007. They also have to inform them about the languages that they will be serving. The new law requires hospitals to post notices about financial assistance around their facilities, explain financial assistance to patients who are seeking services, and include information about the availability of financial assistance on all bills, in multiple languages. If they fail to do this, they will not be allowed to draw money from the uncompensated health care pool fund by the government. They will also have to show how much assistance they have provided to people in need. The hospitals would need to inform the patient about the available assistance when they inquire about health insurance from the patients, as well.
Nisha Agarwal, an attorney with New York Lawyers for the Public Interest, explained the hospitals’ responsibility to inform potential patients about affordable care. “In addition to the new financial assistance law, New York state recently enacted laws that strengthen the rights of patients who do not speak English well enough to discuss complicated medical or billing information. Hospitals in New York state must provide you with a free interpreter who is skilled in your language.”
The ruling passed as part of the budget process between the governor and the legislature. Because of the pressure from the state to do something about the issue, the governor and the legislature came together to address the issue urgently, thus it was not introduced as a bill.
“The new law is an important step in fixing the broken health care system,” said Juanita Lara, health program director for the Latin American Integration Center, an immigrant rights organization in Queens and Staten Island. “The law requires private hospitals to provide non-emergency care to people who have limited income.”
“Until now, many people delayed seeking medical care until they could wait no longer,” said Afrah Yusr, health advocate with TAMKEEN – Center for Arab-American Empowerment. “The new law will give people access to private hospital clinics, which is preferable to the emergency room and much less costly for both the hospital and the patient.”
“Hospitals can no longer deny care to uninsured people who live nearby,” explained Theo Oshiro, health program director at Make the Road by Walking, a grassroots immigrant rights organization in Bushwick, Brooklyn. “The most important thing for New Yorkers to do now is make an appointment to see a doctor at their local hospital clinic, request an interpreter, and apply for financial assistance.”
More than three million residents of New York state, including 1.7 million New York City residents, do not have insurance to cover the high cost of medical care. The majority of uninsured New Yorkers are employed in jobs that do not provide health benefits. Under the new law, hospitals must help patients apply for financial aid and public health programs like Medicaid prior to sending a patient’s unpaid bills to a collection agency. The law also limits how much a hospital can demand in monthly payments and prohibits common yet egregious collection practices.
The rule has been well received by common New Yorkers as well.
“This is wonderful news. It will make life much easier for many, especially those who are always worried about health issues,” Sunita Diwedi.
“Health care in New York is not cheap. It often leaves a hole in our pockets, but if the hospitals stay true to this ruling and cooperate with the patients, this may be a boon to many New Yorkers. We all start worrying about flu and other common diseases, but don’t have recourse to go to the hospital. This ruling will definitely help many,” said Manish Kalra, who lives in Queens.
