Advocate gives uninsured patients retroactive discount

Uninsured patients are eligible for retroactive discounts at Advocate Health Care hospitals following the settlement of a lawsuit announced Wednesday.

The announcement comes as uninsured patients statewide are about to get mandatory discounts under an Illinois law to take effect this spring.

Previously, hospitals typically charged uninsured patients two to three times as much as insured patients, because insurance companies negotiated lower rates.

After nonprofit hospitals came under fire, they began instituting discounts for the uninsured.

Under the settlement, Advocate will offer its current financial aid to uninsured patients who received medically necessary care at an Advocate hospital from Nov. 1, 2000 to now. Advocate offers discounts of 60 to 100 percent for people making up to 4 times the federal poverty level, or $82,500.

In addition, Advocate will offer an ombudsman to help make future patients aware of and get the aid. Plaintiff's attorney Tom Geoghegan said that's important, because many patients were unaware they could get help, were unable to pay, and ended up being sued.

"This settlement is about making sure we're doing a good job of communicating our existing policy to people who deserve financial assistance," Advocate spokesman Nate Llewellyn said.

Advocate has sent notices of the settlement to 170,000 uninsured patients. For information, see advocatecristianisettlement.com, or call 1-888-356-0273.

Advocate, the largest health care provider in Illinois, operates nine acute care hospitals in the Chicago area, including Lutheran General in Park Ridge, Good Shepherd in Barrington, and Good Samaritan in Downers Grove, and Advocate Condell Medical Center in Libertyville.

Resurrection Health Care also reached a similar settlement recently in a separate lawsuit.

Large hospitals often provide millions of dollars in charity care annually, but critics argue it's not nearly enough, because nonprofits receive exemptions for property tax and federal income tax.

This April, state law will require hospitals to offer discounts of up to 65 percent to uninsured patients making up to six times the federal poverty levels, or $127,200, and up to half that level in rural areas.

The law would also cap maximum payments at 25 percent of annual family income.

Many suburban hospitals already offer significant discounts. Edward Hospital in Naperville, for instance, offers a 58 percent discount; Central DuPage Hospital in Winfield offers discounts of 25 to 100 percent; and Alexian Brothers Hospital Network 15 to 100 percent.