More Northwell Health patients will get free care, financial aid
June 4, 2024, 5:22 p.m.
The expansion of charity care mirrors new requirements for hospitals.
Northwell Health, New York state’s largest health network, will overhaul its financial assistance program to provide more free and discounted care to low-income patients, following a review of its practices by state Attorney General Letitia James.
“No one should face the choice between putting food on the table or receiving medical care,” James said in a statement on the deal on Tuesday.
The agreement closely mirrors charity care policies that will soon be required of all hospitals statewide under legislation passed as part of the budget for the 2024-2025 fiscal year. Northwell’s policy goes a step further by covering its 56 clinics as well as its 21 hospitals, even though only hospitals are covered under the state law.
Starting in October, all New York hospitals will be legally required to waive out-of-pocket costs for patients earning less than 200% of the federal poverty level, and to provide discounted rates on a sliding scale for those earning up to 400% of the federal poverty level. The current federal poverty level is $15,060 for an individual, or $31,200 for a household of four people.
All hospitals will also be required to ensure every patient is aware of the option to apply for financial assistance by informing them about their policies during intake and discharge and conspicuously posting notices in their facilities.
In its agreement with the state attorney general, Northwell is committing to take similar steps, although it will also expand eligibility for financial assistance to those earning up to 500% of the federal poverty level.
New York hospitals have long been required to provide some level of financial aid, but there was no requirement to waive costs for the lowest-income patients. Many hospitals have come under fire for not having clear policies or providing their fair share of charity care, given the tax breaks they receive.
Northwell is among the New York hospitals that the nonprofit Community Service Society of New York has called out in the past for suing patients over medical debt, and in some cases, garnishing their wages. Northwell has committed in its agreement with the attorney general to have a Medical Debt Ombudsperson review any potential actions to collect debt from patients in the future.
The new state law will prohibit all hospitals from taking legal action to recover medical debt from patients earning less than 400% of the federal poverty level.
Elisabeth Benjamin, vice president of health initiatives at the Community Service Society, celebrates the new financial aid mandate that passed for all hospitals in the state budget. But she chafed at the attorney general’s announcement of a deal with Northwell.
She pointed out that the attorney general has represented New York’s state-run hospitals in their own lawsuits against patients to collect medical debt, which the Community Service Society highlighted in a report released this month.
The attorney general is charged under New York law with representing state institutions in court.
James' office did not respond to a request for comment on the lawsuits.
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