Washington state health care reform proposal seeks medical debt write-offs for millions
Dec 14, 2021, 12:18 PM
(Photo by Karen Ducey/Getty Images)
(Photo by Karen Ducey/Getty Images)
Under Washington state law, those at the federal poverty level — $12,900 for an individual and $26,500 for a family of four — are forgiven their out-of-pocket medical debt. New legislation proposed by Washington Attorney General Bob Ferguson and Rep. Tarra Simmons, D-Bremerton, are looking to expand that program to another 2.2 million Washingtonians for full or partial medical debt forgiveness.
House Bill 1616 would expand the threshold for full write-offs of out-of-pocket medical expenses for those who exceed the federal poverty level by as much as 300%. Eligibility for partial write-offs would be extended to those 400% above that level.
Charity care, established in 1989, allows state residents to receive treatment without third-party coverage. It forgives the full amount of medical charges for those within the federal poverty level.
Wednesday deadline for 2022 health care coverage through Washington Healthplanfinder
“Health care is essential for every Washingtonian, not just for those who can afford it,” Ferguson wrote in a news release. “A single parent working two minimum wage jobs to make ends meet is not eligible for charity care under current law. No one should be forced to choose between health care and putting food on the table. This bill helps provide more equitable health care access to millions of low-income Washingtonians.”
Were the bill to pass in the Legislature as written, individuals making up to $38,000 a year and families of four with an income of $79,500, or three times the federal poverty level, would become eligible for complete write-offs of their out-of-pocket medical expenses. Individuals at four times the poverty level, or those who make $51,000 in individual annual income or $106,000 for a family of four, would be eligible for a 50% reduction.
“Charity care requires corporations that make a profit off the health and safety of Washington residents to give back to those in our society who need it most,” Rep. Simmons said in a news release. “The ambiguity in Washington’s charity care law allows corporations to create confusing standards and inconsistent policies that too often results in the denial of care to those who need it most. This bill will raise and standardize the threshold for people to qualify for charity care making these policies fairer and more equitable for the people of Washington.”
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