Bill > H1025

This bill aims to prevent unnecessary medical debt by establishing new requirements for hospitals and their affiliates regarding charity care and debt collection policies. It defines "high medical costs" as exceeding a certain percentage of household income or a lower amount set by the hospital, and "underinsured" or "uninsured" individuals as those with high medical costs who lack adequate insurance. Hospitals must create financial assistance policies that reduce charges for underinsured and uninsured patients, particularly those at or below 600% of the federal poverty level, and must actively inform patients about public assistance programs like MassHealth and assist them with applications. Hospitals are also required to have clear policies on when and how patient debt is sent for collection, including posting these policies online and filing them with the attorney general, who can take enforcement action. Furthermore, hospitals and their assignees cannot report negative information to credit bureaus or sue patients at or below 200% of the federal poverty level without specific board approval, and any payment plans offered must be interest-free, with specific procedures for renegotiation and notification before the plan is declared inoperative. The bill also mandates that before final bill collection, hospitals must audit bills for financial assistance eligibility and conduct further outreach to patients. Finally, it requires hospitals to provide patients with written notice about potential separate bills from affiliated healthcare professionals and to inform them about their insurance coverage and how to inquire about it.