Revenue Cycle Policies and Procedures
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1 Revenue Cycle Policies and Procedures Policy Name: Financial Assistance Policy (FAP) General Policy and Procedure Overview: It is the policy of Baylor Emergency Medical Center to identify patients that may qualify for financial assistance, provide financial assistance for those who qualify, and properly document the assistance provided. This Financial Assistance Policy also serves to meet State/Federal requirements and applies to the Facilities listed in Attachment A. Any material modifications to the standards set forth in this Policy must be approved by the respective Joint Venture Board of Trustees. DETAILED POLICY 1. Eligibility Criteria All patients who receive services from a Facility listed in Attachment A may apply for financial assistance at any time during the continuum of care or after care is received. Each patient s situation will be evaluated according to current circumstances, such as income, assets or other resources available to the patient or patient s family when determining the ability to pay the outstanding patient account balance. The Financial Assistance Application lists all documents required to substantiate the circumstances above. The Financial Assistance Eligibility Discount Guidelines (Attachment B) are utilized to determine what amount, if any, of the outstanding patient account balance will be discounted after payment has been applied by all third parties. Extenuating circumstances may be considered outside of the Financial Assistance Eligibility Discount Guidelines on a case-by-case basis. The financial assistance offered under this Policy does not apply to physician or other professional fees billed separately from the hospital fees. Baylor Emergency Medical Center, reserves the right to further limit the services covered by this Policy. 2. Methods for Applying or Obtaining Assistance 2.1 Application Process Applying for financial assistance can be initiated through the following methods: Print an application from the website. Websites are individually branded websites per Joint Venture partner. Contact a Customer Service Representative at , Option 1. Request an application in person from one of the facilities. Request a copy of the application via mail at the following address: Financial Assistance Policy 2016/01 Page 1
2 Baylor Emergency Medical Center - Central Billing Office Attn: Customer Service 8686 New Trails Drive The Woodlands, TX An assistance application can be initiated on behalf of the patient. It is the responsibility of the patient to provide the necessary information to qualify for financial assistance. 2.2 Community and Charitable Programs Patients of certain approved community and charitable organizations and programs qualify for financial assistance under this Policy. For organizations or programs not approved under this policy, another assistance application may be used as longs as substantially the same items on the assistance application are satisfied, or documentation as to why they were not satisfied is included. Proof of the qualification must be provided before the discount will be applied. 2.3 Presumptive Eligibility Credit reports and other publicly available information, consistent with applicable legal requirements, may be used to determine estimated household size and income amounts. This information will be utilized as the basis for determining financial assistance when a patient does not provide an assistance application or supporting documentation. 3. Length of Eligibility Once financial assistance has been approved, it is effective for all outstanding patient accounts and for all services provided within six (6) months after the date the application was approved. Financial assistance may be extended for an additional six (6) months if documentation validates no substantial change in circumstances qualifying the patient for financial assistance. All patients must reapply after the initial twelve (12) month period is over. Presumptive eligibility will only apply to the date(s) of service associated with the account balance being evaluated. Eligibility will not apply to accounts for future dates of service. 4. Basis for Calculating Amounts Charged The level of financial assistance will be based on classification as Financially Indigent or Medically Indigent as defined below. In all situations, once the patient is determined to qualify for financial assistance that individual will not be charged more for emergency or other medically necessary care than the amounts generally billed to individuals who have insurance covering such care ( AGB ). In determining AGB, Baylor Emergency Medical Center has initially elected to use the Look-Back Method, where AGB percentages are based on Medicare fee for service and all private care insurers as the primary payer, as outlined in Internal Revenue Code (IRC) Section 501(r). The methodology for calculating AGB in the future may change in accordance with applicable regulations. 4.1 Financially Indigent Financially Indigent is defined as a patient whose Yearly Household Income (as defined below in section 5.2.i) is less than or equal to 200% of the Federal Poverty Guidelines (FPG). These Financially Indigent patients are eligible for a 100% discount on outstanding patient account balances based on Schedule 1 of the Financial Assistance Discount Guidelines (Attachment B). Financial Assistance Policy 2016/01 Page 2
3 Example: A patient with a Household Size of 3 (as defined below in section 5.2.ii) and Yearly Household Income of $36,620 is eligible for a financial discount of 100%. 4.2 Medically Indigent Medically Indigent is defined as a patient whose 1) Yearly Household Income is greater than 200% but less than or equal to 500% FPG, and 2) medical bills from all related or unrelated providers, after payment by all third parties, exceeds 5% of their Yearly Household Income, and 3) Is unable to pay the outstanding patient account balance. These Medically Indigent patients are eligible for a 95% discount as set forth in Schedule 2 of the Financial Assistance Eligibility Discount Guidelines (Attachment B). Example: A patient with a Household size of 4 and Yearly Household Income of $85,000 (between 200% - 500% of FPG) is eligible for a financial assistance discount of 95% if the patient s total outstanding medical bills, after all third party payments exceeds 5% of the Yearly Household Income. Assuming the patient s account balance is $10,000 (which is greater than 5% of the Yearly Household Income), the patient is eligible for a 95% discount ($9,500). The patient s remaining obligation would be 5% ($500). 4.3 Financial Assistance Eligibility Discount Guidelines The Financial Assistance Eligibility Discount Guidelines are attached and are made a part of this Policy (Attachment B). The Financial Assistance Eligibility Discount Guidelines will be updated annually in accordance with the FPG as published in the Federal Register by the U.S. Department of Health and Human Services. The method for determining appropriate discount percentages will be reviewed annually to ensure that the patient s outstanding account balances after discount are no more than amounts generally billed to individuals with insurance coverage as outlined in the section above. 5. Determination of Financial Assistance 5.1 Financial Assistance Assessment Determination of financial assistance will be in accordance with procedures that may involve: 5.1.i. An application process, in which the patient or the patient s guarantor is required to supply information and documentation relevant to making a determination of financial need: and/or 5.1.ii. The use of credit reports and other publicly available information that provide a patient s or patient s guarantor s ability to pay. 5.2 Definition of Household Income and Household size Determination of financial assistance will be based on the household income and size provided by the patient through the required documentation request or obtained from a third party vendor. 5.2.i. Household Income: Income will be validated through receipt of the required documents. Adults if the patient is an adult, Yearly Household Income is the sum of yearly gross income or estimated income from the patient and patient s spouse. Minors If the patient is a minor, Yearly Household Income is the sum of yearly gross income from the patient, patient s mother, and patient s father. Financial Assistance Policy 2016/01 Page 3
4 5.2.ii. Household Size: Size will be validated through receipt of the required documents. Adults Household size includes the patient, the patient s spouse and any dependents (as defined by the IRC) Minor Household size includes the patient, patient s mother, patient s father, dependents of the patient s mother, and dependents of the patient s father. 5.3 Income Verification Household Income will be documented through any of the following mechanisms: 5.3.i. Third Party Documentation By the provision of third party financial documentation including IRS Form W-2; Wages and Tax Statement; pay check remittance; Worker s Compensation payment remittance; unemployment insurance payment notice; Unemployment Compensation Determination Letters; response from a credit inquiry and other publicly available information; or other appropriate indicators of the patient s income. Third party documentation provided under this subsection will be handled in accordance with information security procedures and the requirements of securing protected health information. 5.3.ii. Participation in a Means Tested Benefit Program. By the provision of documentation showing current participation in a public benefit program such as Medicaid; County Indigent Health Program; AFDC; Food Stamps; WIC; or other similar means tested programs. Proof of participation in any of the above programs indicates that the patient has been deemed Financially Indigent and therefore, not required to provide income on the assistance application. 5.3.iii. In cases where third party documentation is unavailable, verification of the patient s Yearly Household Income can be done can be done by obtaining the patient s/responsible party s written attestation or by obtaining the patient s/responsible party s verbal attestation. In both instance where the patient or responsible party is unable to provide the requested third party verification, the patient/responsible party is required to provide a reasonable explanation of why the patient or responsible party is unable to provide the required verification. Reasonable attempts will be used to verify patient s attestation and supporting information. 5.3.iv. Expired patients with no surviving spouse may be deemed to have no income for purposes of calculation of Yearly Household Income. Documentation of income is not required for expired patients; however documentation of estate assets may be required. The surviving spouse of and expired patient may apply for financial assistance. 5.4 Disqualification Disqualification after financial assistance has been granted may be for reasons that include but are not limited to one of the following: 5.4.i. Information falsification Financial assistance will be denied to the patient if the patient or responsible party provides false information including information regarding their income, household size, assets or other resources available that might indicate a financial means to pay for care. 5.4.ii. Third Party Settlement Financial assistance will be denied if the patient receives a third party financial settlement associated with the care rendered at one of the Facilities listed in Attachment A. The patient is expected to use the settlement amount to satisfy any patient account balances. Financial Assistance Policy 2016/01 Page 4
5 6. Measures to Publicize the Financial Assistance Policy The measures used to widely publicize this policy to the community and patients include, but are not limited to the following: Posting the policy, financial assistance application and plain language summary on individually branded websites. Contact through the Customer Service Department. Posting conspicuous displays and signage in patient access areas and the Emergency Department of the Facilities. Paper copies of the policy, financial assistance application and plain language summary to all patients upon request and without charge including offering a plain language summary at discharge. Patient billing statements include a notice that informs recipients about the availability of financial assistance under the policy and all methods to obtain assistance. 7. Relationship to Additional Revenue Cycle Policies During the verification process, while the patient s income is being collected, the patient will be treated as any other patient in regards to patient collection efforts as defined in the Patient Billing and Collections Policy. A copy of the Patient Billing and Collections Policy can be obtained free of charge by contacting the Central Billing Office at , Option 1, or in person at any Facility. After the discount is applied in accordance with the Financial Assistance Eligibility Discount Guidelines (Attachment B), the patient is responsible for the remainder of the outstanding balance which shall be no more than AGB as defined in Section 4 of this policy. The balance due shall be no more than amounts generally billed to individuals who have insurance coverage as defined in Section 4 of this Policy. Once the patient qualifies for financial assistance, collection activities will not be pursued on the amount qualified for financial assistance. Patients will be invoiced for any remaining amounts in accordance with the Patient Billing and Collections Policy. This policy does not affect any obligation under the Emergency Medical Treatment and Active Labor Act (EMTALA) This policy does not alter or prevent collection efforts to obtain payments from third party payors. Financial Assistance Policy 2016/01 Page 5
6 Attachment A List of Facilities Baylor Emergency Medical Center at Aubrey Baylor Emergency Medical Center at Burleson Baylor Emergency Medical Center at Colleyville Baylor Emergency Medical Center at Keller Baylor Emergency Medical Center at Mansfield Baylor Emergency Medical Center at Murphy Baylor Emergency Medical Center at Rockwall Financial Assistance Policy 2016/01 Page 6
7 Attachment B Financial Assistance Eligibility Discount Guidelines Schedule 1 Schedule 2 Financially Indigent Classification Medically Indigent Classification* Number in Number in Household 200% FPG Household Up to 500% 1 $ 23,540 1 $ 58,850 2 $ 31,860 2 $ 79,650 3 $ 40,180 3 $ 100,450 4 $ 48,500 4 $ 121,250 5 $ 56,820 5 $ 142,050 6 $ 65,140 6 $ 162,850 7 $ 73,460 7 $ 183,650 8 $ 81,780 8 $ 204,450 Discount 100% of Balance Due Discount 95% of Balance Due * Balance due must be equal to or greater than 5% of the patient's Yearly Household Income for eligibility Financial Assistance Policy 2016/01 Page 7
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