New California law AB 1312
A significant change to California’s hospital financial assistance requirements is coming.
Beginning July 1, 2027, California hospitals will be required to implement new financial assistance screening and presumptive eligibility requirements under Assembly Bill 1312 (AB 1312).
AB 1312 requires hospitals to establish a written process for screening certain patients for charity care or discounted payment eligibility.
The law also expands the use of presumptive eligibility, allowing qualifying patients to be determined eligible for financial assistance without completing the traditional financial assistance application when eligibility can be verified through specified criteria.
This includes certain patients participating in programs such as CalFresh, CalWORKs, WIC, CARE, LIHEAP, Tribal TANF, and the Housing Choice Voucher Program, as well as certain patients experiencing homelessness or who recently qualified for hospital financial assistance.
Hospitals will also have screening obligations involving certain uninsured patients, Medi-Cal patients, and patients enrolled through Covered California.
Implementation may require changes beyond the hospital’s written financial assistance policy. Hospitals should consider how AB 1312 will affect:
Hospitals should ensure that applicable financial assistance screening and adjustments have been addressed before an account is referred for collection.
Should you have any questions or need assistance please do not hesitate to contact us.
Mary Hobbs
VP of Compliance
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