Monday, August 12, 2013

Obamacare Penalizes Charitable Hospitals

Father Z had a great piece on his blog. You can read it here.I cut and pasted it below:

Catch-22 for Catholic Hospitals under Obamacare

You are a homeless person.  You are sick and you know it is bad.  You stagger into the ER of St. Ipsidipsy Catholic Hospital in Tall Tree Circle.  You have no insurance, health coverage, or money.  You are seen by a doctor and treated.
The Obama Administration then punishes the hospital for treating you, a person without government-approved obligatory Obamacare.
From the Daily Caller:
Obamacare installs new scrutiny, fines for charitable hospitals that treat uninsured people
Charitable hospitals that treat uninsured Americans will be subjected to new levels of scrutiny of their nonprofit status and could face sizable new fines under Obamacare.
A new provision in Section 501 of the Internal Revenue Code, which takes effect under Obamacare, sets new standards of review and installs new financial penalties for tax-exempt charitable hospitals, which devote a minimum amount of their expenses to treat uninsured poor people. Approximately 60 percent of American hospitals are currently nonprofit.
Charity for the uninsured is one of the factors that could discourage enrollment in Obamacare, which requires all Americans to purchase health insurance or else face new taxes themselves from the IRS. [You all get that, right?]
“It requires tax-exempt hospitals to do a community needs survey and file additional paperwork with the IRS every three years. This is to prove that the charitable hospital is still needed in their geographical area — ‘needed’ as defined by Obamacare and overseen by IRS bureaucrats,” said John Kartch, spokesman for Americans for Tax Reform.
Failure to comply, or to prove this continuing need, could result in the loss of the hospital’s tax-exempt status. The hospital would then become a for-profit venture, paying income tax — hence the positive revenue score” for the federal government, Kartch said. “Obamacare advocates turned over every rock to find as much tax money as possible.” [Sly, no?]
Additionally, the rise in the number of insured Americans under Obamacare will make it more difficult for tax-exempt hospitals to continue meeting required thresholds for treating the uninsured, driving more hospitals into the for-profit category and yielding more taxable money for the federal government.
“The requirements generally apply to any section 501(c)(3) organization that operates at least one hospital facility,” according to a “Technical Explanation” report of new Obamacare provisions prepared by the congressional Joint Committee on Taxation (JCT) on March 21, 2010, the day Obamacare passed.
Obamacare’s new requirements could slam hospitals with massive $50,000 fines if they fail to meet bureaucrats’ standards.
[...]
Read the rest there.
So, the Obama Administration forces everyone to get health coverage, but for a non-profit hospital to maintain its non-profit status, it has to treat a minimum number of those without coverage.  But that pool of people will shrink dramatically, thus driving hospitals into the taxable category.
Good grief.
“Good morning, ma’am!  We’re from the government and we’re here to help!”

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