Today Your Legal Corner will discuss “The Affordable Care Act.” This is the first article in a series of three.
At age 19, I graduated from Peirce College, choosing not to attend my graduation, instead, eagerly heading off to find fame and fortune in New York City.
I was a brand new manager of a “hip” clothing store situated near Columbia University on the Upper West Side of NYC. I remember one day in particular when feeling ill, my employee/friend instructed me to just walk over to Saint Luke's Hospital and get care in their emergency room. Trude said “not to worry, she would go with me and they would see me free of charge.”
So after work, that's what we did on that fall day back in 1978.
Those of you old enough may recall that in 1946 Congress sought to modernize hospitals, nursing homes and neighborhood clinics across the country by providing grants and loans for health facility construction. The funds granted were in exchange for free or low cost medical services for pending patients unable to pay. This federal law was known as the Hill Burton Act.
The Hill Burton Act stated that the hospitals who received grant funding were to provide a reasonable volume of care to all people living in the area. The hospitals were also required to accept Medicare and Medicaid and post information about the low cost services they offered. Further, these hospitals were required to provide emergency service and have a nonbiased admissions policy.
Presently, only approximately 200 hospitals are still obligated to offer free or reduced cost services under Hill Burton since the program ended distribution of funds back in 1997.
For most facilities, the uncompensated services obligation terminated within twenty years from initial funding. As a matter of fact, in New Jersey, we have only five facilities remaining who are obligated to provide uncompensated services. All are located in the northern section of the state. The number of Hill-Burton facilities remaining is severely limited, with some states not having any. For an updated list see http://www.hrsa.gov/gethealthcare/affordable/hillburton/facilities.html.
Alternatively, taxpayers foot the bill for the charity care offered for the uninsured in their state. In New Jersey, the Charity Care Assistance program provides reduced or free care for “necessary” care for those who meet income and assets eligibility criteria. The allocated state budget for charity care in New Jersey for 2013 is $675 million. This is the cost New Jersey taxpayers pay for the uninsured in this state. See  for specific hospital funding allocations.
Enter, the Affordable Care Act. This Act increases the number of participants who are able to be insured. For example, under the Affordable Care Act, young people up to the age of twenty six can now be insured as a dependent on their parent's health plan. Before enactment of this law, all insurance companies could remove children from a parents plan at the age of 19, thereby increasing the amount of individuals who were uninsured.
At this time, health insurance coverage is available for a child up to age twenty-six even if (1) married, (2) not living with you (3) attending school or not (4) child is not financially dependent on you, (5) eligible to enroll on their own employer's plan. Allowing a child to remain on a parent's plan for insurance coverage is more affordable. When insurance is more affordable, individuals will obtain and utilize health insurance, which in the long run will benefit us all through lower premiums.
Get to know the Affordable Care Act and how it will affect you. For additional information see .