HERSHEY, Pa. — On July 1, new Internal Revenue Service regulations regarding financial assistance will take effect, changing the requirements not-for-profit hospitals and health systems must meet to keep their tax-exempt status. The revised regulations are part of the Patient Protection and Affordable Care Act and will be implemented at Penn State Health Milton S. Hershey Medical Center.
The changes include requiring hospitals and health systems to:
- Have a written financial assistance policy and “plain language summary” of the policy available to the public.
- Limit the amounts that can be charged for medically necessary care to individuals eligible for financial assistance, charging only “amounts generally billed” for such care. This means patients without insurance who qualify for financial assistance will get a discount equal to those who have coverage. The Medical Center will also apply this discount to all self-pay patients (except for international patients), although it is not required to do so by the new regulations.
- Refrain from extraordinary collection actions — such as selling the debt to a third party or reporting delinquent debt to a credit bureau — before making reasonable efforts to determine whether an individual qualifies for financial assistance.
Also on July 1, the Medical Center will move to a new policy that provides 100 percent financial assistance for medically necessary services to individuals who qualify. Income is the primary factor when determining eligibility. At the Medical Center, individuals who have an income at or below 300 percent of the U.S. Federal Poverty Level will be eligible for financial assistance. The 300 percent threshold is $72,750 for a family of four.
All patients who currently qualify for financial assistance will need to reapply. The Medical Center has mailed information on how to do so to affected individuals while also making information available on its website.
More information about the Medical Center’s financial assistance policy, including the new financial assistance application and a “plain language summary” of the policy, is available on the Patient Financial Services page. Patients can also call 717-531-5069 or 1-800-254-2619. Office hours are Monday-Wednesday 8 a.m. to 5:30 p.m. and Thursday-Friday 8 a.m. to 5 p.m.