Medical bills can be painful! In fact, two thirds of all bankruptcies cite medical costs as a major factor. Washington recently got a new law that will significantly reduce out-of-pocket medical costs across the state. It sounds great, but some are not happy about the potential long-term effects.
Here are Five Fast Facts about Washington’s newly revised charity care law:
- 💪What Happened? As of July 1, four million residents now qualify for free or discounted care at hospitals statewide. This gives our state the strongest protections against out-of-pocket hospital costs anywhere in the country.
- 🏥Who Pays What? The law puts hospitals on the hook for the increased financial assistance. There are two tiers, one for big hospital systems (about 80% of the hospital beds in the state) and one for small independent hospitals. The final cost depends on the income of the patient and the facility being used.
- 💸🚫Make It Real For Me - For example, a family of four earning as much as $55k will now pay zero out-of-pocket costs at any hospital in Washington. A family of four earning as much as $111k can now get a discount of up to 50% off their out-of-pocket costs at Tier 1 hospitals.
- 😟It’s Not All Roses - However, not everyone is happy with this. In order to stay open, hospitals will likely reduce services to make up their new costs. This is even more likely for small rural hospitals which already operate on slim margins and haven’t recovered from the pandemic.
- ⚖️A Ripple Effect? This law may also disrupt the insurance market, as people can increase the deductible on their plans to reduce their monthly cost, knowing they won’t have to pay those out-of-pocket expenses. No one really knows how this will affect premiums overall.
🔥Bottom line: There’s no such thing as a free lunch. This new law will certainly benefit Paychecks for those who use the discounts, but what will we miss out on if hospitals reduce their services to make up for the increased cost? What if they close entirely? Time will tell if this law is a terrific success…or something else.
What do you think about this new expansion of discounted hospital care?
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