New law limits hospital costs for Illinois' uninsured

A new law going into effect April 1 caps hospital bills and gives significant discounts to uninsured people in Illinois.

The Hospital Uninsured Patient Discount Act reduces charges for the uninsured and prevents discriminatory pricing based on patients' insurance status.

The law says hospital charges cannot exceed the costs of services plus 35 percent, and puts an annual cap on the amount hospitals can collect from patients who are uninsured. The new law says hospitals cannot collect more than 25 percent of a family's income during a 12-month period.

Attorney General Lisa Madigan says the law makes Illinois one of the most progressive in tackling problems faced by the uninsured.

"As unemployment rates climb and a record number of Illinois families struggle financially, this new law limits the financial strain caused by an unexpected illness or a medical emergency so that necessary hospital services are no longer out of reach for uninsured patients."

The bill was sponsored by Rep. Karen May (D-Highland Park) and Sen. Jeffrey Schoenberg (D-Evanston).