23 Mar 2015

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USC report: Law dramatically reduced hospital prices for the uninsured

Within 5 years, 97 percent of hospitals statewide offered free care to uninsured patients who fell below aOlernKienOP
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To comply with a statewide "fair pricing" law, hospitals throughout California have significantly lowered prices to uninsured patients, with aOlernKienOP
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The surprising success of the legislation represents the beginnings of a safety net not in place for other states.

Some 6.8 million people in California lack health insurance, often relying on hospital emergency departments for healthcare. Based on hospital billing plans, those visits can rack up huge bills that the uninsured cannot pay becoming just a "starting point" for negotiations between the hospital and the patient.

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That combination of transparency and specific price caps has led to a dramatic reform statewide, according to a new study by USC’s Glenn Melnick and aOlernKienOP
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"The implications, I think, of this study are national in that California’s law is groundbreaking because it specifically mandates income thresholds and prices," said Melnick, professor at the USC Sol Price School of Public Policy and the aOlernKienOP
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Melnick and Fonkych studied the pricing plans submitted by all of the state’s general acute care hospitals, representing roughly 90 percent of all hospitals throughout the state.

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"Once hospitals realize that the whole world’s going to learn how they treat low income aOlernKienOP
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Nationally, more than 50 aOlernKienOP
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