California Hospitals Must Cough Up Millions To Meet Charity Care Rules

California Attorney General Xavier Becerra has ordered three California hospitals to pay out millions of dollars to local nonprofits, declining their requests to be freed from charity obligations required under state law.

The hospitals, based in the Central Valley and Los Angeles, argued that there isn’t as much need to support charity care because millions more people have health insurance under the Affordable Care Act, and therefore don’t need as much financial help to pay medical bills.

Becerra’s refusal signals his agreement with health consumer advocates, who argue that patients still are struggling to pay their bills, even when they have insurance. While it applies to just a few hospitals, the decision sends a message to hospitals around the state, some of which want similar relief.

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