CHA News Article

CHA Opposes Charity Care Spending Mandate, Releases Media Statement

CHA released a media statement yesterday opposing AB 975 (Wieckowski/Bonta), which aims to establish mandatory charity care requirements for not-for-profit (NFP) hospitals. The bill includes a provision that, beginning Jan. 1, 2015, hospitals would need to provide at least 8 percent of their operating margin in charity care. The proposed legislation also narrowly defines charity care, excluding such elements as underfunding from government-funded programs, patients’ portion of cost-sharing with health insurance, and any amount that exceeds 125 percent of what Medicare would have paid for a service. CHA convened the NFP hospitals last year to discuss strategies for defeating arbitrary mandates on charity care and hired a communications consultant to help develop and implement a plan. CHA’s first response to AB 975 included the attached media statement, released Feb. 25. Additional response tools under development include talking points, video advocacy materials, opinion editorials and a fact-based white paper.