Beginning on Thursday, Colorado hospitals must screen low-income patients for discounts or public health insurance programs and limit the monthly medical bills they can be charged.

Eligible Coloradans include those with household incomes at or under 250% of the federal poverty level — up to $69,375 for a family of four. If a patient is uninsured, hospitals will automatically screen them for the financial supports. If they have insurance, patients must request a screening.

These new requirements are a result of the Hospital Discounted Care Law passed last year, intended to make health care more affordable for Coloradans.

“This law is a major step forward for Colorado,” said Julia Char Gilbert, policy advocate at the Colorado Center on Law and Policy. “No one should face financial ruin because they or a loved one needed medical care. These patient protections bring us that much closer to achieving that reality in Colorado.”

After screening for and providing the financial supports, the new law limits how much money hospitals and emergency rooms can bill qualifying low-income patients for emergency and elective services.

Price transparency enforcement starts next week for Colorado hospitals

Monthly bill payments cannot be over 4% of a patient’s gross monthly household income if from a health care facility and no more than 2% if from a licensed health care professional. After 36 months of payments, a patient’s bill is considered paid in full and any collections attempts on remaining balances must cease.

The law also requires hospitals to take steps before pursuing collections over unpaid bills, including waiting 182 days after a patient receives care, notifying a patient at least 30 days before initiating collections and informing a patient about their discounted care and public health insurance options.

“These are the protections Coloradans deserve from our hospitals,” said Adam Fox, deputy director of the Colorado Consumer Health Initiative. “This law helps ensure people can get the hospital care they need with more peace of mind.”

The Hospital Discounted Care Law, also known as House Bill 21-1198, passed the state legislature in June 2021 and was signed into law the following month.

Sponsored by three Democrats, the bill passed largely along party lines, receiving a 20-15 vote in the Senate and a 41-24 vote in the House.

With focus on fentanyl, providers say Colorado must improve its treatment options