California Assembly Bill AB1020

California 2021-2022 Regular Session

• Introduced: 2/18/21
• Refer: 3/18/21
• Report Pass: 3/18/21
• Refer: 3/22/21
• Refer: 3/25/21
• Report Pass: 3/25/21
• Refer: 3/26/21
• Report Pass: 3/30/21
• Refer: 4/5/21
• Report Pass: 4/6/21
• Refer: 4/8/21
• Report Pass: 4/21/21
• Refer: 4/21/21
• Refer: 5/5/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/2/21
• Refer: 6/16/21
• Report Pass: 6/30/21
• Refer: 6/30/21
• Report Pass: 7/1/21
• Refer: 7/1/21
• Report Pass: 7/14/21
• Refer: 7/14/21
• Report Pass: 8/16/21
• Refer: 8/16/21
• Refer: 8/23/21
• Report Pass: 8/26/21
• Enrolled: 9/7/21
• Chaptered: 10/4/21
• Passed: 10/4/21

Caption

Health care debt and fair billing.

Impact

AB 1020 mandates hospitals to maintain clear and accessible policies for discount payments and charity care. Hospitals are required to display their policies on their websites and provide notifications regarding financial assistance before engaging in collection activities. Notably, the bill prohibits hospitals from selling patient debt to debt buyers without fulfilling certain criteria, ensuring patients are informed of their financial options. By July 2024, hospitals that improperly bill a patient will be subject to administrative penalties, promoting accountability and compliance with the law.

Summary

Assembly Bill No. 1020, known as the health care debt and fair billing bill, aims to enhance protections for patients facing medical debt and modifies eligibility criteria for charity care at hospitals. Under this legislation, uninsured patients and those with high medical costs who are at or below 400% of the federal poverty level can qualify for charity care and discount payments. This adjustment increases eligibility compared to existing laws that previously set the threshold at 350%. Additionally, the bill specifies that patients with out-of-pocket costs exceeding 10% of their current family income may also be considered for these financial aids.

Sentiment

The sentiments regarding AB 1020 are largely supportive among advocates for health care reform, who view the bill as a necessary step toward preventing patient exploitation due to medical debt. Proponents argue it increases access to financial assistance for low-income patients and protects them from aggressive collection practices. However, there may be concerns from some hospital administrators regarding the regulatory burden and operational impacts of complying with the new requirements, indicating a polarized view on the legislation's implementation.

Contention

Key points of contention may arise around the implementation burden this bill places on hospitals, especially smaller facilities that may lack the resources to adapt to these significant changes in policy. The flexible criteria for defining high medical costs could also lead to disputes over qualifications for charity care, raising questions about how strictly hospitals will adhere to the new rules. Overall, while the bill aims to improve patient protections, the balance between operational feasibility for hospitals and the need for fair patient billing practices remains a critical discussion point.