Health Provider Charity Care or Financial Assistance

What is health provider financial assistance?

Hospital financial assistance helps you pay for needed medical treatment. Health providers offer discounted care to patients who meet certain income and sometimes asset requirements. Income requirements to qualify for hospital financial assistance can vary from $18,864 to $262,000, but generally stay between $78,600 and $104,800 for a family of 4.

When determining if a patient qualifies for financial assistance, hospitals may also choose to look at monetary assets. Monetary assets generally do not include retirement accounts, pensions or their primary residence — only assets that can be easily converted to cash. The general requirement is that they will consider 50% of monetary asset value after $10,000. About 40% of policies have no asset requirement.

What types of discounts are available?

There are generally three types of discounts: (1) free care (also called Charity Care), (2) Medicare, Medicaid or government provider rate or (3) discount off of hospital sticker prices (gross charges before discount) or amounts generally billed (AGB), which is the average reimbursement from all payers.

In addition, many insured patients also qualify if in two ways. Hospitals may help them with thier co-pays, deductibles and other charges when they meet certain income requirements or when their bill exceeds a specific portion of their income, regardless of insurance, their hospital will offer a catastrophic care discount. The catastrophic care discount can be free care or highly subsidized care for bills above a certain proportion of income. This proportion tends to vary from 2% to 30%, but most hospitals have it between 5-10% of yearly income.

Hospitals will also write off old debt upto three years, so you can apply for financial assistance, even after you have been to a hospital and received a bill.

Clinic Price Check makes it easy to check if you qualify. Use our financial assistance calculator, and let us do the work for you.

Do note the Affordable Care Act mandated that all hospitals must provide you a rate less than the AGB if you qualify for financial assistance. You can always ask a hospital for the AGB discount rate to compare to the price that you received.

Concepts and Definitions:

Monetary Asset Value:Some hospitals consider assets when determining if you qualify for financial assistance. In general, monetary asset value does not include non-monetary assets or retirement accounts, pensions and the like. Hospitals generally consider 50% of asset value after $10,000.

Uninsured: Some hospitals only offer financial assistance to the uninsured. However, almost all have a Catastrophic Care discount for uninsured or insured patients. Basically, the amount paid cannot go over a certain percentage of income, usually 10%, but sometimes 3-5%.

Charity Care: Charity Care is free care.

Financial Assistance: Financial assistance is a partial discount on services. The best discounts are less than the Medicare rate or the rate that Medicare reimburses hospitals for services.

Catastrophic Care Discount: A catastrophic care discount is a discount given when the cost of medical care exceeds a certain portion of income, it’s usually 10%, but varies by provider and can be as low as 2% and as high as 30%.

Medicare/Medicaid Reimbursement Rate: This is the rate that Medicare or Medicaid reimburses hospitals for the care they provide to their patients. Medicare and Medicaid cap rates for procedures, related to how much it costs a hospital to provide services and is generally a good price for a health service.

Sticker Prices: Sticker prices are the gross charges of a hospital before discounts, sometimes called Chargemaster rates.

Amounts Generally Billed (AGB):The amounts generally billed is a measure of the average reimbursement a provider gets from most, if not all payers, to the hospital. The more government payers that a hospital has, generally the lower the AGB for you.