Minnesota hospitals can no longer pursue collection activities on overdue bills until they screen patients for charity care that could reduce or eliminate their debts.
The requirement took effect Nov. 1 as a result of state legislation. Lawmakers were prompted to act this year by reports that hospitals were suing patients for debts that were eligible for discounts or write-offs.
Had Yolanda Pierson known she was eligible for assistance, she said she could have paid off mounting medical debts and avoided collection efforts by Mayo Clinic — which at one point cut off her family's access for four months to nonemergency care.
"Nobody ever told us of any type of benefits or anything we could qualify for," said Pierson, a Blaine mother who sought treatment from Mayo in Rochester six years ago for her son's debilitating eye condition. "We had insurance, so I guess they just didn't think to talk to us about it."
The difference between a patient supported by charity care and one saddled with debts has sometimes been random, even though hospitals have clear income and clinical guidelines to determine which patients qualify for help. Some patients simply didn't know to ask.
Sen. Liz Boldon, DFL-Rochester, said she authored the screening legislation to give everyone a chance to find out if they qualify for help. Minnesota has a low adult uninsured rate under 5% but a substantial underinsured population that can't afford high copays and deductibles of health plans.
Boldon, a nurse, credited an investigation by the Rochester Post-Bulletin for identifying patients who could have received charity care but instead were sued by Mayo for unpaid bills.
"This is a significant problem for Minnesota in many ways, and it has far-reaching effects," she said. "When families have exorbitant medical debts, that is money they are not spending on groceries or even on future health care. I talk to a lot of patients who are avoiding care because they are worried about their costs."
