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Negotiation of discounts and different rates and methods of payments with hospitals. Filing with the office - Conn. Gen. Stat. § 19a-646

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No hospital may provide a discount or a different rate from the filed rates or charges to any payer.  Payers may negotiate with hospitals for a different rate or reimbursement method as long as the payments and charges for the payer are on file at the hospital.  Discount agreements or agreements for different rates or methods of reimbursements must be accompanied by a complete written agreement between the hospital and the payer, and must be on file at the hospital.  The agreement must be kept on file for three years. 

The charges and payments for each payer receiving a discount must be recorded and reported by the hospital.  A payer may also negotiate for discounts for rates or charges for prompt payment.  Payers may also negotiate to receive discounts for these administrative services:  hospital electronic billing, systems allowing a hospital to verify the insurance coverage of a patient by the payer at the time of service, and a guarantee of payment within the scope of the agreement between the hospital and the payer. 

A hospital who agrees to a discount must file the agreement with the hospital and provide the discount to other payers who agrees to make prompt payment or provide similar administrative services.  This law does not require a payer to reimburse for services not covered or for amounts that exceed the limit. 

A hospital that has a program with a bank to reduce its bad debt load can reduce its published charges for the patient’s portion of the bill, where a private individual is responsible for paying, once all insurer and third party payers have paid their charges, as long as the individual and hospital have agreed that the remaining reduced charges due will be paid in full through the individual’s bank.

Current as of June 2015