Defense in collection action. A. Each hospital in this state shall establish a discount program for hospital charges for qualified self-pay patients who have household incomes of up to three hundred percent (300%) of the federal poverty guidelines. This discount program shall not be required for patients who are eligible for or enrolled in private or public insurance plans providing hospital coverage, including indemnity plans. B. While a hospital may set uniform prices for its services, products, and fees, qualified self-pay patients shall be eligible for minimum discounts from the hospital so that the hospital charge after the discount shall not exceed the greater of the amount Medicare would pay for the same services, or the cost of services as determined by multiplying the hospital’s whole cost-to-charge ratio by the billed charges. C. It shall be the responsibility of the patient to establish their eligibility for the discount. D. The provisions of this section do not apply to procedures that are not medically necessary as determined by the treating physician. E. In a collection action brought by the hospital, a patient may assert the provisions of this section as a defense to the action. To be available as a defense, the patient must establish eligibility for the discount by proving: 1. The household income of the patient is below three hundred percent (300%) of the federal poverty guidelines; and 2. The patient is not eligible or enrolled in private or public insurance plans providing hospital coverage. If the elements are established, the hospital is limited in its collection efforts to the greater of the amount Medicare would pay for the same services, or the cost of services as determined by multiplying the hospital’s whole cost-to-charge ratio by the billed charges.
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