House Committee on Health and Environment (03/29/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON HEALTH AND ENVIRONMENT

Date:	03/29/2012	ATTENDANCE

Time:	01:35 PM to 02:18 PM	Bradford	E*
		Brown	E*
Place:	LSB A	Fields	E
		Joshi	X
This Meeting was called to order by		Kefalas	X
	Representative Summers	Kerr J.	X
		Massey	X
This Report was prepared by		McCann	X
	Amanda King	Peniston	X
		Schafer S.	X
		Young	X
		Acree	X
		Summers	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-134		Referred to the Committee of the Whole

01:36 PM -- Senate Bill 12-134

Representative Acree presented Senate Bill 12-134 concerning financial assistance in Colorado hospitals. The bill places requirements on hospitals regarding financial aid for qualified patients who are uninsured, have a family income of less than 250 percent of the federal poverty income guidelines, and do not qualify for the Colorado Indigent Care Program. Under the bill, hospitals are required to provide information to all patients concerning the hospital's financial assistance, charity care, and payment plan policies; communicate the required information in a clear and understandable way and in languages appropriate to communities and patients served; post the information conspicuously on its website and in waiting areas; provide the information upon each patient's discharge; offer to screen uninsured patients for eligibility for financial aid; and offer financial assistance to qualified patients on a community-specific basis. Hospitals are limited to charging persons eligible for financial assistance the lowest negotiated rate from a private payer for emergency or other medically necessary care. Collection proceedings may not commence until the hospital offers a qualified patient a reasonable payment plan, and until a scheduled payment is at least 30 days overdue. The 30-day rule applies only to the first overdue payment. Two statements of support were provided to the committee (Attachments A and B). Representative Acree explained her experience with charity care assistance.

01:40 PM -- Tom Nash, Colorado Hospital Association, testified in support of the bill. He stated that the vast majority of Colorado hospitals do have charity care assistance, payment plans, and discount care programs. He stated that in 2010, Colorado hospitals incurred $1.5 billion dollars in unreimbursed costs associated with charity care, bad debt, and underpayment by public programs. Mr. Nash responded to questions about the bill, including questions concerning language in the bill about when it would be possible or not possible for a hospital to offer to screen an uninsured patient for financial assistance, whether hospitals already have policies in place about notifying patients about charity care assistance, the amount that would be charged to uninsured patients under the bill, and the amount that appears on billing statements versus what procedures actually cost.

01:49 PM -- Danny Rheiner, Colorado Center on Law and Policy, and Britt Landis, Colorado Consumer Health Initiative, testified in support of the bill. Mr. Rheiner discussed the explanation of benefits documents that were distributed to the committee (Attachment C). Ms. Landis discussed the research conducted by the Colorado Consumer Health Initiative on hospital financial assistance programs. Mr. Rheiner responded to questions about whether other states have similar legislation in place, the hospital billing system, and why the bill is needed.

01:58 PM -- Cassidy Dellemonache, Arc of Colorado, read a letter from one of her organization's advocates who worked with a client to address his medical bills after a two-week hospital stay. Representative Summers discussed the impact of medical expenses, including bankruptcy. Representative Acree stated 62 percent of bankruptcies are medical-related.

02:04 PM -- Carol Pace, AARP, testified in support of the bill. She explained how the bill could benefit both consumers and providers.

02:07 PM -- Shewit Doherty, representing herself, testified in support of the bill. She described her experience with medical debt for an injury she suffered while she was uninsured. She explained that charity care assistance was not explained to her at the time she was receiving care. Ms. Doherty responded to questions about the amount of her medical bills.

02:10 PM

Representative Acree providing closing comments on the bill. The committee dialogued about the bill. Representative Acree responded to questions about the eligibility requirements for charity care assistance. The committee continued to dialogue about the bill.


BILL:	SB12-134
TIME:	02:16:53 PM
MOVED:	Acree
MOTION:	Moved to refer Senate Bill 12-134 to the Committee of the Whole. The motion passed on a vote of 11-0, with two members excused.
SECONDED:	Kefalas
		VOTE
	Bradford	Excused
	Brown	Yes
	Fields	Excused
	Joshi	Yes
	Kefalas	Yes
	Kerr J.	Yes
	Massey	Yes
	McCann	Yes
	Peniston	Yes
	Schafer S.	Yes
	Young	Yes
	Acree	Yes
	Summers	Yes

YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

02:18 PM

Representative Summers explained that the committee may meet next week even though nothing is currently on the committee's calendar.

02:18 PM

The committee adjourned.