Obamacare levies fines on non-profit hospitals that offer free healthcare to the poor

[libertyjam]

http://theantimedia.org/obamacare-l...-healthcare-to-the-poor/#sthash.ljqCXbHQ.dpuf

October 18, 2013 in Politics

- poorrichardsnews.com
It’s one of the lesser-known provisions in the so-called “Affordable” Care Act, but it’s having a major impact on charitable hospitals. Obamacare actually fines hospitals that provide free health services to the poor.
from Daily Caller:

“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.”
​

read the rest
It’s ironic isn’t it? The left’s chief complaint about the American healthcare system is that it’s “for profit,” but Obamacare will end up forcing non-profit hospitals to either go under or become for-profit institutions themselves.
From day 1, Obamacare has not been about improving healthcare or making it more affordable. It’s been about government control. Sadly, the American people are only now beginning to find out the truth about how devastatingly unaffordable the Affordable Care Act really is.
Source: http://poorrichardsnews.com/post/64309797136/obamacare-levies-fines-on-non-profit-hospitals-that

 

[Zippyjuan]

Here is what the IRS says:
http://www.irs.gov/Charities-&-Non-...c)(3)-Hospitals-Under-the-Affordable-Care-Act

The Affordable Care Act (ACA), enacted March 23, 2010, added new requirements that hospital organizations must satisfy in order to be described in section 501(c)(3), as well as new reporting and excise taxes.

Because many of these provisions are effective for tax years beginning after the date of enactment, revision of the core Form 990, the Form 990 Schedule H and instructions has been a priority for the Internal Revenue Service (IRS).

As the IRS develops the new forms and guidance to implement the ACA, the IRS goals will be to:
•allow hospitals to clearly describe their activities and policies;
•minimize burden to the extent possible; and
•capture compliance information as required for adherence with the statute.

New Requirements for Charitable 501(c)(3) Hospitals

Section 501(r), added to the Code by the ACA, imposes new requirements on 501(c)(3) organizations that operate one or more hospital facilities (hospital organizations). Each 501(c)(3) hospital organization is required to meet four general requirements on a facility-by-facility basis:
•establish written financial assistance and emergency medical care policies,
•limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance under the hospital's financial assistance policy,
•make reasonable efforts to determine whether an individual is eligible for assistance under the hospital’s financial assistance policy before engaging in extraordinary collection actions against the individual, and
•conduct a community health needs assessment (CHNA) and adopt an an implementation strategy at least once every three years. (These CHNA requirements are effective for tax years beginning after March 23, 2012).

The ACA also added new section 4959, which imposes an excise tax for failure to meet the CHNA requirements, and added reporting requirements under section 6033(b) related to sections 501(r) and 4959

SO they can be fined for not meeting the criteria above but I don't see anything about being fined for offering free care to patients.

 

[satchelmcqueen]

not directly fined for free care. but since more people will be insured through ocare, itll leave less uninsured for the hospitals to claim tax exemption. thus forcing them to eventually become for profit, killing off any free care in the future. sort of a back door way to get what they want. thats my understanding.

Here is what the IRS says:
http://www.irs.gov/Charities-&-Non-...c)(3)-Hospitals-Under-the-Affordable-Care-Act



SO they can be fined for not meeting the criteria above but I don't see anything about being fined for offering free care to patients.

 

[MelissaWV]

•limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance under the hospital's financial assistance policy,

What if you are eligible, but you have "Obamacare"? Do you have to limit the amount charged? Before you tell me that's a no-brainer, read it again and get back to me on that.