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Kaiser Daily Health Policy Report
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State Watch | Illinois Attorney General Postpones Push for New Charity Care Guidelines
[Apr 04, 2006]

      Illinois Attorney General Lisa Madigan (D) "has abandoned earlier hopes of passing her controversial charity care proposal this legislative session," but she will continue negotiating with the Illinois Hospital Association and introduce a new version of the bill in 2007, the Chicago Sun-Times reports (Rackl, Chicago Sun-Times, 4/3). Madigan in January proposed the Tax-Exempt Hospital Responsibility Act, which would have required not-for-profit hospitals to provide a minimum percentage of free services in order to maintain their tax-free status. Madigan said that Illinois hospitals spend on average less than 1% of their hospital charges on services for the uninsured. The act would have required hospitals to spend at least 8% of their operating costs on uninsured patients with annual incomes up to 150% of the federal poverty level and to provide discounts on a sliding scale to uninsured individuals with incomes between 150% and 250% of the poverty level (Kaiser Daily Health Policy Report, 1/24). Ann Spillane, Madigan's chief of staff, said, "Our commitment is only increasing. This isn't going to go away," adding, "The more the spotlight is turned on this, the clearer it is that this has to happen." IHA has argued that not-for-profit hospitals already provide enough community benefits to justify tax exemption and that the bill would have forced hospitals to cut services and possibly shut down, the Sun-Times reports. Danny Chun, spokesperson for IHA, said, "It's a very complex set of issues," adding, "We're definitely going to be having some serious discussions and deliberations with the attorney general." The General Assembly in March approved an amended version of Madigan's bill that, if signed into law by the governor, would require hospitals to publicize financial assistance programs, provide itemized bills upon request and inform patients of how to dispute charges. The bill, the Fair Hospital Billing & Collections Practices Act, also would prohibit hospitals from taking legal action against uninsured patients who have shown they cannot afford to pay their bills (Chicago Sun-Times, 4/3).


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