Obamacare - fines charitable hospitals that treat uninsured people

[IZZY ANN]

I was interested to know what would happen to the sick who are often treated at hospitals "free of charge" and who PLAN on remaining uninsured (because they still can't afford the premiums under Obamacare). Needless to say, I am SHOCKED at the results of my search from the following article posted 8/8/2013:

Obamacare installs new scrutiny, fines for charitable hospitals
that treat uninsured people
By Patrick Howley

http://dailycaller.com/2013/08/08/obamacare-installs-new-scrutiny-fines-for-charitable-hospitals-that-treat-uninsured-people/

Charitable hospitals that treat uninsured Americans will be subjected to new levels of scrutiny of their nonprofit status and could face sizable new fines under Obamacare.

A new provision in Section 501 of the Internal Revenue Code, which takes effect under Obamacare, sets new standards of review and installs new financial penalties for tax-exempt charitable hospitals, which devote a minimum amount of their expenses to treat uninsured poor people. Approximately 60 percent of American hospitals are currently nonprofit.

Charity for the uninsured is one of the factors that could discourage enrollment in Obamacare, which requires all Americans to purchase health insurance or else face new taxes themselves from the IRS.

“It requires tax-exempt hospitals to do a community needs survey and file additional paperwork with the IRS every three years. This is to prove that the charitable hospital is still needed in their geographical area — ‘needed’ as defined by Obamacare and overseen by IRS bureaucrats,” said John Kartch, spokesman for Americans for Tax Reform.

“Failure to comply, or to prove this continuing need, could result in the loss of the hospital’s tax-exempt status. The hospital would then become a for-profit venture, paying income tax — hence the positive revenue score” for the federal government, Kartch said. “Obamacare advocates turned over every rock to find as much tax money as possible.”

Additionally, the rise in the number of insured Americans under Obamacare will make it more difficult for tax-exempt hospitals to continue meeting required thresholds for treating the uninsured, driving more hospitals into the for-profit category and yielding more taxable money for the federal government.

“The requirements generally apply to any section 501(c)(3) organization that operates at least one hospital facility,” according to a “Technical Explanation” report of new Obamacare provisions prepared by the congressional Joint Committee on Taxation (JCT) on March 21, 2010, the day Obamacare passed.

Obamacare’s new requirements could slam hospitals with massive $50,000 fines if they fail to meet bureaucrats’ standards.

“The hospital must disclose in its annual information report to the IRS (i.e., Form 990 and related schedules) how it is addressing the needs identified in the assessment and, if all identified needs are not addressed, the reasons why (e.g., lack of financial or human resources). Each hospital facility is required to make the assessment widely available. Failure to complete a community health needs assessment in any applicable three-year period results in a penalty on the organization of up to $50,000,” according to the JCT report.

The government is particularly interested in how and why hospitals will be providing discounted or free care to poor patients, requiring each of them to “adopt, implement, and widely publicize a written financial assistance policy” and explain the methods they use to screen applicants for assistance and how they calculate patients’ bills.

A delegate working under the Department of Health and Human Services must review the innumerable reports charitable hospitals file every three years, along with copies of their audited financial statements.

After sifting through this massive amount of information, the delegate and HHS secretary must attempt to identify trends in the hospitals’ spending and send in a comprehensive report of their findings to Congress by 2015, according to the JCT report.

Healthcare experts warn that the Obamacare’s new requirements make it almost impossible for charitable hospitals to navigate treacherous new waters.

“Nonprofit hospitals should be advised that the new PPACA requirements will play a significant role in how they operate and report, specifically when it comes to billing and collections for services provided to the uninsured. The new law leaves many gray areas and hospitals themselves will have to establish eligibility criteria for financial assistance. Following the new procedures as best they can will ensure the best chance of maintaining their tax exempt status,” wrote D. Douglas Metcalf, partner at the law firm Lewis and Roca, in a 2013 op-ed entitled “Will nonprofit hospitals disappear under Obamacare?”

The White House did not return a request for comment.

[Rapunzel]

It keeps getting worse and worse... BTW. This was in Hillary are, too.

[LambChop]

This is one area that I agree with the law.  As it turns out, many of the not-for-profit "charity" hospitals are anything but charitable.
Investigation into this over the last few years have found they don't give out nearly what they get in tax credits for being not-for-profit.

They claim to be helping a community when they are in honesty taking resources from them.

[IZZY ANN]

This is one area that I agree with the law.  As it turns out, many of the not-for-profit "charity" hospitals are anything but charitable.
Investigation into this over the last few years have found they don't give out nearly what they get in tax credits for being not-for-profit.

They claim to be helping a community when they are in honesty taking resources from them.

I appreciate your comment but I am not sure what you mean by "tax credits" ?  I would honestly like to know the truth about these not-for-profit hospitals and if you can provide any reference material, I would be most appreciative.

I see these Obamacare penalties as just another "in your face" vindictiveness on the part of POS and his administration in achieving their goal to punish as many Americans (businesses) as possible because they do not share the same political ideology nor the same religious beliefs. Just looking forward to "the signature legislation" of the POS to become the biggest failure in American History. I personally am thrilled this health care legislation carries "his" name so both can become synonymous with the biggest disaster that this Country has ever known.

[LambChop]

I appreciate your comment but I am not sure what you mean by "tax credits" ?  I would honestly like to know the truth about these not-for-profit hospitals and if you can provide any reference material, I would be most appreciative.

I see these Obamacare penalties as just another "in your face" vindictiveness on the part of POS and his administration in achieving their goal to punish as many Americans (businesses) as possible because they do not share the same political ideology nor the same religious beliefs. Just looking forward to "the signature legislation" of the POS to become the biggest failure in American History. I personally am thrilled this health care legislation carries "his" name so both can become synonymous with the biggest disaster that this Country has ever known.

Not-for-profit hospitals are tax exempt.  They pay no taxes on any income because they are supposed to be giving healthcare to those who would otherwise not get it.  In investigations all over the country in the last few years it's been found most of the charity they were supposed to provide just wasn't there.  In a California investigation it was found that many for profit hospitals gave more than not for profit hospitals did.

Here's a couple of stories:

http://www.nationalnursesunited.org/press/entry/new-report-california-non-profit-hospitals-save-billions-while-providing/


http://www.kaiserhealthnews.org/stories/2012/april/27/charity-care-nonprofit-hospitals-patient-debt.aspx

Although the person in this story doesn't seem to be a responsible adult *who gets pregnant with a 5th child when you're already struggling to feed the 4 before them?* A charity hospital should be just that for people in her predicament, self induced or not

http://articles.chicagotribune.com/2006-01-25/news/0601250170_1_non-profit-hospitals-illinois-hospital-association-chicago-hospitals


These hospitals claim they administer to the poor, but what they actually do is reap the profit and not pay any taxes.  It's a bunch of horse hooey.

[IZZY ANN]

Not-for-profit hospitals are tax exempt.  They pay no taxes on any income because they are supposed to be giving healthcare to those who would otherwise not get it.  In investigations all over the country in the last few years it's been found most of the charity they were supposed to provide just wasn't there.  In a California investigation it was found that many for profit hospitals gave more than not for profit hospitals did.

Here's a couple of stories:

http://www.nationalnursesunited.org/press/entry/new-report-california-non-profit-hospitals-save-billions-while-providing/


http://www.kaiserhealthnews.org/stories/2012/april/27/charity-care-nonprofit-hospitals-patient-debt.aspx

Although the person in this story doesn't seem to be a responsible adult *who gets pregnant with a 5th child when you're already struggling to feed the 4 before them?* A charity hospital should be just that for people in her predicament, self induced or not

http://articles.chicagotribune.com/2006-01-25/news/0601250170_1_non-profit-hospitals-illinois-hospital-association-chicago-hospitals


These hospitals claim they administer to the poor, but what they actually do is reap the profit and not pay any taxes.  It's a bunch of horse hooey.

Thanks, I will read the links. Yes, I understand the 501(c)(3) tax exemption, just wasn't sure what you meant about "tax credits" (seemed misleading).