AB 1312 (Schiavo) requires hospitals implement prescreening for financial assistance, rather than saddling consumers with debt they can’t pay
SACRAMENTO, CA – A coalition of health care consumer and health equity advocates joined Asm. Pilar Schiavo (D-Chatsworth) to introduce legislation that would help consumers avoid crushing medical debt after hospital care. The bill, AB 1312, addresses a severe affordability challenge for Californians who pay some of the nation’s highest hospital costs. The legislation is co-sponsored by the California Pan-Ethnic Health Network (CPEHN), Health Access California, Leukemia and Lymphoma Society, and Rising Communities.
“Californians should not avoid hospital care out of fear they can’t pay the bill. No family should struggle to pay off avoidable hospital debt as a parent or child is recovering from an illness,” said Asm. Schiavo. “For too long, patients have been in the dark about financial assistance even though financial help for hospital bills is available. Now, we have the tools to quickly estimate patients’ eligibility for financial assistance and help them apply for relief before they ever receive a hospital bill. AB 1312 ensures hospital patients get the help they need to afford care, not a call from a collection agent.”
“While California has led the way in expanding access to care through Medi-Cal and hospitals are required to help those who can’t afford care, a lack of information and burdensome financial assistance application processes leave huge barriers in the way of health care access,” said Kiran Savage-Sangwan, CPEHN Executive Director. “By preventing financial catastrophe before families even receive a bill they can’t pay, AB 1312 is a significant step forward in making care more affordable and accessible, and closing the access gap for communities of color.”
“More than one in three Californians report having medical debt, with most families owing that debt for hospital bills,” said Katie Van Deynze, Senior Policy and Legislative Advocate for Health Access California. “Many don’t even know that hospitals are required to provide a discount or charity care, and unfortunately, the process to apply can be burdensome. AB 1312 requires that hospitals pre-screen patients for presumptive eligibility for discounted or free hospital care so families don’t miss out on critical financial assistance to help cover their bill.”
Many are pushed into debt they can’t reasonably pay back. “When your child is sick, you do whatever it takes—no matter the cost. The stress of medical debt lingers long after the hospital visits. It’s heartbreaking to choose between paying for care and keeping the lights on.” Veronica Montenegro, Chief Community Resilience Officer for Rising Communities.
More than one in three Californians reported medical debt in 2023, and the rate is even higher among Black, Latine, and Spanish-speaking Californians and those with low incomes. Patients are forced to skip or delay care making conditions worse.
“The costs of cancer care have risen so high that patients are forced to drain savings and take on debt,” said Adam Zarrin, director of state government affairs for The Leukemia & Lymphoma Society. “AB 1312 will ensure any patient eligible for hospital assistance gets it easily, without extra hassle or follow-up.”
In adopting AB 1312, California would build on past consumer-protection legislation that prevents medical debt from being reported through credit bureaus. The bill would require all hospitals to pre-screen patients who are uninsured, enrolled in Medi-Cal or other means-tested programs, or who owe more than $500, for financial assistance eligibility prior to discharge and adjust bills accordingly. AB 1312 also includes provisions to protect patients’ privacy and prevent discrimination in algorithms hospitals use to determine eligibility for assistance. The bill standardizes best practices for financial assistance already underway at some California hospitals and recommended for those in Los Angeles County. It would have our state join Oregon, Illinois, and Maryland among states that connect patients to assistance faster by requiring hospitals to pre-screen for financial assistance eligibility without requiring a patient to provide documentation or other verification.
After introduction, AB 1312 awaits referral to its first committee in the Assembly.
About Asm. Pilar Schiavo
Assemblywoman Pilar Schiavo represents the 40th Assembly District, representing the Northwest San Fernando Valley and the Santa Clarita Valley.
About the California Pan Ethnic Health Network
The California Pan Ethnic Health Network brings together and mobilizes communities of color to advocate for public policies that advance health equity and improve health outcomes in our communities. Learn more at cpehn.org.
About Health Access California
Health Access California is statewide health care consumer advocacy coalition, working with a broad range of diverse organizations seeking affordable, equitable and quality health care for ALL Californians.
About the Leukemia and Lymphoma Society
The Leukemia & Lymphoma Society® (LLS) is a global leader in the fight against cancer. The LLS mission: Cure leukemia, lymphoma, Hodgkin’s disease and myeloma, and improve the quality of life of patients and their families. LLS funds lifesaving blood cancer research around the world, provides free information and support services, and is the voice for all blood cancer patients seeking access to quality, affordable, coordinated care.
About Rising Communities
Rising Communities (RC), formerly known as Community Health Councils (CHC), is a non-profit, community-based advocacy and policy organization dedicated to advancing social equity and systemic change in underserved communities. Founded in 1992, RC was created in response to growing health and healthcare disparities, with a mission to co-develop transformational social equity models that help communities thrive.
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