Minnesota Legislature
More transparency called for on hospital financial aid policies
The IRS has recently enacted rules requiring nonprofit hospitals to tell patients of any financial aid policy they may have before they take out a medical lien for nonpayment. However, there is no recourse in the state for a patient who thinks they were harmed by violation of these rules.
Rep. Debra Hilstrom (DFL-Brooklyn Center) and Sen. Kevin Dahle (DFL-Northfield) sponsor HF1647/SF1741* that would provide some ability for patients caught in this situation. The House passed the bill 128-0 Tuesday. The bill now move to the governor’s desk for action. The Senate passed the bill 56-0 on April 14.
“Medical debt is a serious and growing problem in Minnesota and thousands of Minnesota families are put in jeopardy,” Hilstrom said. “It is the number one cause of personal bankruptcy.”
The bill would allow a patient to bring an action against a hospital which used extraordinary collection efforts and has not provided, in plain language, a summary of their financial assistance policy.
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