Article
California hospitals face changes in hospital fair pricing policies in 2025
Feb. 19, 2025 · Authored by Karl Rebay, Denise Stark
California hospitals must meet additional requirements of the Hospital Fair Pricing Act. Governor Gavin Newsom approved Assembly bill no. 2297 (AB 2297) in September 2024 which mandates that all California hospitals comply with the additional requirements.
These changes may necessitate updates to hospitals' policies, financial assistance applications, and debt collection procedures.
If revisions were needed, hospitals must have submitted the updated documents, along with redlined versions, to the Department of Healthcare Access and Information (HCAI) by Jan. 1, 2025. Failure to have complied may result in fines for hospitals.
Requirements
These new requirements follow Assembly bill no. 1020 (AB 1020), signed by Newsom in 2021 adding even more specificity to the regulations.
AB 1020
Key elements have been in effect since Jan. 1, 2022.
- Revised eligibility threshold requirement for charity care or discounted care from 350% to 400% of federal poverty level
- Redefined high medical costs
- Provided specific details on notice requirements
- Prohibited credit reporting or civil action for 180 days post initial billing
- Required debt collection policy be submitted to HCAI
AB 2297
New key requirements are in effect as of Jan. 1, 2025. Hospitals or emergency physicians will now be prohibited from:
- Taking the patients’ monetary assets into account when determining their eligibility for charity care and discount payment policies, while allowing hospitals to consider the availability of a patient’s or their family’s Health Savings Account (HSA)
- Setting deadlines for applying for charity care or discounted payments
Related sections
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