Connecticut 2020 Regular Session

Connecticut Senate Bill SB00340 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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4	4	LCO No. 1595 1 of 6
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6	6	General Assembly Raised Bill No. 340
7	7	February Session, 2020
8	8	LCO No. 1595
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10	10
11	11	Referred to Committee on INSURANCE AND REAL ESTATE
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13	13
14	14	Introduced by:
15	15	(INS)
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20	20	AN ACT CONCERNING CO LLECTION EFFORTS BY HOSPITALS AND
21	21	COLLECTION AGENTS AG AINST UNINSURED AND UNDERI NSURED
22	22	PATIENTS.
23	23	Be it enacted by the Senate and House of Representatives in General
24	24	Assembly convened:
25	25
26	26	Section 1. Section 19a-673 of the general statutes is repealed and the 1
27	27	following is substituted in lieu thereof (Effective October 1, 2020): 2
28	28	(a) As used in this section: 3
29	29	(1) "Collection agent" has the same meaning as provided in section 4
30	30	19a-509b. 5
31	31	[(1)] (2) "Cost of providing services" means a hospital's published 6
32	32	charges at the time of billing, multiplied by the hospital's most recent 7
33	33	relationship of costs to charges as taken from the hospital's most recently 8
34	34	available annual financial filing with the unit. 9
35	35	(3) "High deductible health plan" has the same meaning as provided 10
36	36	in Section 220(c)(2) or Section 223(c)(2) of the Internal Revenue Code of 11
37	37	1986, or any subsequent corresponding internal revenue code of the 12 Raised Bill No. 340
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39	39
40	40
41	41	LCO No. 1595 2 of 6
42	42
43	43	United States, as amended from time to time. 13
44	44	[(2)] (4) "Hospital" [means an institution licensed by the Department 14
45	45	of Public Health as a short-term general hospital] has the same meaning 15
46	46	as provided in section 19a-490. 16
47	47	[(3)] (5) "Poverty income guidelines" means the poverty income 17
48	48	guidelines issued from time to time by the United States Department of 18
49	49	Health and Human Services. 19
50	50	(6) "Underinsured patient" means any person who is insured under a 20
51	51	high deductible health plan and liable for one or more hospital charges, 21
52	52	and whose income is at or below six hundred per cent of the poverty 22
53	53	income guidelines. 23
54	54	[(4)] (7) "Uninsured patient" means any person who is liable for one 24
55	55	or more hospital charges whose income is at or below two hundred fifty 25
56	56	per cent of the poverty income guidelines who (A) has applied and been 26
57	57	denied eligibility for any medical or health care coverage provided 27
58	58	under the Medicaid program due to failure to satisfy income or other 28
59	59	eligibility requirements, and (B) is not eligible for coverage for hospital 29
60	60	services under the Medicare or CHAMPUS programs, or under any 30
61	61	Medicaid or health insurance program of any other nation, state, 31
62	62	territory or commonwealth, or under any other governmental or 32
63	63	privately sponsored health or accident insurance or benefit program 33
64	64	including, but not limited to, workers' compensation and awards, 34
65	65	settlements or judgments arising from claims, suits or proceedings 35
66	66	involving motor vehicle accidents or alleged negligence. 36
67	67	(b) (1) No hospital that has provided health care [services] to an 37
68	68	uninsured patient may collect from the uninsured patient more than the 38
69	69	cost of providing services. 39
70	70	(2) No hospital that has provided health care to an underinsured 40
71	71	patient on or after October 1, 2020, may collect from the underinsured 41
72	72	patient more than the cost of providing services plus interest at an 42
73	73	annual rate that is not greater than the lesser of: 43 Raised Bill No. 340
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76	76
77	77	LCO No. 1595 3 of 6
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79	79	(A) The weekly average one-year constant maturity yield of United 44
80	80	States Treasury securities as published by the Board of Governors of the 45
81	81	Federal Reserve System for the week preceding the date on which such 46
82	82	underinsured patient first receives a bill for such health care if such 47
83	83	average is equal to or greater than two per cent per annum; 48
84	84	(B) A rate established by the executive director of the Office of Health 49
85	85	Strategy, established under section 19a-754, and in effect on the date on 50
86	86	which such underinsured patient first receives a bill for such health care 51
87	87	if the Board of Governors of the Federal Reserve System discontinues 52
88	88	the rate described in subparagraph (A) of this subdivision; or 53
89	89	(C) Five per cent. 54
90	90	(c) Each collection agent [, as defined in section 19a-509b,] engaged in 55
91	91	collecting a debt from a patient arising from [services] health care 56
92	92	provided at a hospital shall provide written notice to such patient as to 57
93	93	whether the hospital deems the patient an insured patient , 58
94	94	underinsured patient or [an] uninsured patient and the reasons for such 59
95	95	determination. 60
96	96	Sec. 2. Section 19a-673b of the general statutes is repealed and the 61
97	97	following is substituted in lieu thereof (Effective October 1, 2020): 62
98	98	(a) No hospital, as defined in section 19a-490, shall refer to a collection 63
99	99	agent, as defined in section 19a-509b, or initiate an action against an 64
100	100	individual patient or such patient's estate to collect fees arising from 65
101	101	health care provided at a hospital: 66
102	102	(1) [on] On or after October 1, 2003, unless the hospital has [made a 67
103	103	determination whether] determined that such individual patient is [(1)] 68
104	104	an uninsured patient, as defined in section 19a-673, as amended by this 69
105	105	act, [and (2) not eligible] who is ineligible for the hospital bed fund; [.] 70
106	106	or 71
107	107	(2) On or after October 1, 2020, unless the hospital has determined 72
108	108	that such individual patient is: 73 Raised Bill No. 340
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110	110
111	111
112	112	LCO No. 1595 4 of 6
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114	114	(A) An uninsured patient, as defined in said section 19a-673, as 74
115	115	amended by this act, who is ineligible for the hospital bed fund; or 75
116	116	(B) An underinsured patient, as defined in said section 19a-673, as 76
117	117	amended by this act, who is ineligible for the hospital bed fund and, if 77
118	118	such underinsured patient has requested review of an adverse 78
119	119	determination, as defined in section 38a-591a, for health care provided 79
120	120	at such hospital, such underinsured patient has not received a final 80
121	121	adverse determination, as defined in said section 38a-591a, for such 81
122	122	health care. 82
123	123	(b) On or after October 1, 2020, no hospital, as defined in section 19a-83
124	124	490, and no collection agent, as defined in section 19a-509b, that receives 84
125	125	a referral from a hospital, shall: 85
126	126	(1) Report an individual patient to a credit rating agency, as defined 86
127	127	in section 36a-695, for a period of one year beginning on the date that 87
128	128	such patient first receives a bill for health care provided by the hospital 88
129	129	to such patient on or after October 1, 2020; 89
130	130	(2) Initiate an action to foreclose a lien on an individual patient's 90
131	131	primary residence if the lien was filed to secure payment for health care 91
132	132	provided by the hospital to such patient on or after October 1, 2020; or 92
133	133	(3) Apply to a court for an execution against an individual patient's 93
134	134	wages pursuant to section 52-361a, or otherwise seek to garnish such 94
135	135	patient's wages, to collect payment for health care provided by the 95
136	136	hospital to such patient on or after October 1, 2020, if such patient is 96
137	137	eligible for the hospital bed fund. 97
138	138	[(b)] (c) Nothing in [this] subsection (a) or (b) of this section shall 98
139	139	affect a hospital's ability to initiate an action against an individual 99
140	140	patient or such patient's estate to collect coinsurance, deductibles or fees 100
141	141	arising from health care provided at a hospital where such coinsurance, 101
142	142	deductibles or fees may be eligible for reimbursement through awards, 102
143	143	settlements or judgments arising from claims, suits or proceedings. In 103
144	144	addition, nothing in [this section] said subsections shall affect a 104 Raised Bill No. 340
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146	146
147	147
148	148	LCO No. 1595 5 of 6
149	149
150	150	hospital's ability to initiate an action against an individual patient or 105
151	151	such patient's estate where payment or reimbursement has been made, 106
152	152	or likely is to be made, directly to the patient. 107
153	153	Sec. 3. Section 19a-673d of the general statutes is repealed and the 108
154	154	following is substituted in lieu thereof (Effective October 1, 2020): 109
155	155	If, at any point in the debt collection process, whether before or after 110
156	156	the entry of judgment, a hospital, [a consumer collection agency acting 111
157	157	on behalf of the hospital, an attorney representing the hospital or any 112
158	158	employee or agent of the hospital] as defined in section 19a-490, as 113
159	159	amended by this act, or a collection agent, as defined in section 19a-509b, 114
160	160	as amended by this act, becomes aware that a debtor from whom the 115
161	161	hospital is seeking payment for [services] health care rendered receives 116
162	162	information that the debtor has requested review of an adverse 117
163	163	determination, as defined in section 38a-591a, for such health care and 118
164	164	has not received a final adverse determination, as defined in said section 119
165	165	38a-591a, or is eligible for hospital bed funds, free or reduced price 120
166	166	hospital services [,] or any other program which would result in the 121
167	167	elimination of liability for the debt or reduction in the amount of such 122
168	168	liability, [the] such hospital [, collection agency, attorney, employee or 123
169	169	agent] or collection agent shall promptly discontinue all collection 124
170	170	efforts against such debtor for such health care and refer the collection 125
171	171	file for such health care to [the] such hospital [for determination of such 126
172	172	eligibility. The] until such hospital determines whether such debtor is 127
173	173	eligible for such elimination or reduction or receives such final adverse 128
174	174	determination. Such collection [effort] efforts shall not resume until such 129
175	175	hospital makes such determination [is made] or such debtor receives 130
176	176	such final adverse determination. 131
177	177	This act shall take effect as follows and shall amend the following
178	178	sections:
179	179
180	180	Section 1 October 1, 2020 19a-673
181	181	Sec. 2 October 1, 2020 19a-673b
182	182	Sec. 3 October 1, 2020 19a-673d
183	183	Raised Bill No. 340
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186	186
187	187	LCO No. 1595 6 of 6
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189	189	Statement of Purpose:
190	190	To restrict (1) the amount that a hospital or collection agent may recover
191	191	from an uninsured or underinsured patient for the unpaid cost of health
192	192	care, and (2) the manner in which a hospital or collection agent may
193	193	secure or recover payment for such unpaid cost.
194	194	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
195	195	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
196	196	underlined.]
197	197