Financial Aid Law (FAL)
December 5, 2006
Dear Administrator:
As previously noted in my letter of July 28, 2006 (copy enclosed), Chapter 57 of the Laws of 2006 has added a new Subdivision 9-a to Section 2807-k of the NYS Public Health Law. This new law requires each general hospital to establish patient financial aid policies and procedures, as prescribed, for services rendered on and after January 1, 2007, as a condition for receipt of hospital indigent care and high need funding for awards applicable to periods on and after January 1, 2009.
Paragraph (b)(vi) of this Subdivision, permits a hospital to consider, on a case-by-case basis, the existence of significant assets owned by a patient, and/or legally responsible individuals, when determining potential eligibility for mandated financial assistance. If your hospital´s policies and procedures include this consideration for patients, and/or legally responsible individuals, at or be1ow an annual income of 150% of the federal poverty level, your hospital must first obtain Department of Health approval to include this consideration for patients in this income category.
To implement this requirement, all hospitals must complete and certify the enclosed survey. If your hospital will not be considering asset of patients with annual income at or below 150% of the federal poverty level in it´s eligibility procedures, merely answer "NO" to the question in paragraph (1) of the survey, sign the certification, and submit as instructed below.
If your answer is "YES" to the question in paragraph (1) of the survey, carefully read the conditions of approval stated in paragraph (2) and sign the certification confirming your compliance. Please note, that these conditions only apply in your consideration of assets for patients, and/or legally responsible individuals, with annual income at or below 150% of the federal poverty level.
Upon receipt of an appropriately certified survey, your hospital is granted Department approval to proceed accordingly. For those answering "YES" to the question in paragraph {1), a directive will be issued to all hospitals in December of each year starting in 2007 to update the asset levels specified in paragraph (2)(b) of the enclosed survey for the subsequent calendar year. If your hospital answered "NO" and wishes to consider such assets for patients with annual income at or below 150% of the federal poverty level in calendar years subsequent to 2007, a revised survey must he submitted and certified prior to the effective calendar year.
All hospitals must submit a properly certified survey by December 29, 2006. Failure to proceed, as instructed, prohibits your hospital from considering assets in determining potential eligibility for mandated financial assistance for patients with annual income at or below 150% of the federal poverty level. All completed surveys should be sent to:
Mr. Richard Pellegrini Director
Bureau of Financial Management & Information Support
New York State Department of Health Rm 984, Corning Tower
Empire State Plaza Albany, NY 12237
Should you have any questions on this matter, please contact Mr. Richard Pellegrini at 518-474-1673.
Sincerely,
Mark H. VanGuysling
Assistant Director
Division of Health Care Financing
