Finding solutions to lower health care costs has never been easier for citizens of Pecos County, Texas. Most qualify for free hospital care provided by the only hospital in the county.
According to the U.S. Census Bureau (2021) the average per capita income is less than $30,000 and the uninsured rate is 24.7%.
A review of the Pecos County Community Hospital’s financial assistance policy indicates potential savings could be realized by community members.
According to the Pecos Community Hospital Financial Assistance Policy;
“Patients with a family income at or below 300 percent of applicable federal poverty guidelines or patients with a family income above 300 percent of applicable federal poverty guidelines who have significant unpaid medical bills may be eligible for financial assistance if the patient lacks sufficient funds to pay the out-of-pocket portion of their hospital bill.”
300% of the federal poverty level for a family of one is $43,740 which means quite a few community members will qualify for hospital financial assistance.
All of this is possible through one of the best kept Affordable Care Act secrets most are completely unaware of, which is founded upon Section 501 of the internal revenue code. Enacted as part of the ACA, Section 501 (r) of the Internal Revenue Code (IRC) establishes a national scheme governing the financial assistance, billing and collection practices of hospitals exempt from taxation under IRC § 501 (c) (3), including government hospitals with dual tax-exempt status.
More plan sponsors are taking advantage of the code through careful structuring of the terms and conditions of their plan document to facilitate risk transfer through hospital financial assistance policies. More individuals are realizing they too can achieve savings never thought possible before.
The question is will this small rural hospital survive financially if everyone who qualifies applies for financial assistance? Probably not. In the alternative it may make better sense to build out a community based health plan lead by Pecos Community Hospital. The challenge would be gaining the support of employers in the area. It takes an experienced cowboy herding cats to accomplish that.
