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HomeHealth and Safety CodeDiv. 107Pt. 2Ch. 2.5Art. 1§ 127445 Discounted Payments Exclusion

§ 127445 Discounted Payments Exclusion

Health and Safety Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 127445 Discounted Payments Exclusion

Key Takeaways

  • •Hospitals give discounts or free care to some people who can't pay much. These lower prices don't count as the hospital's normal prices.
  • •The government won't use these discount prices to decide how much to pay hospitals for other patients.
  • •This rule helps hospitals keep giving discounts without worrying about losing money from the government.

Example

A hospital gives a big discount to a family with low income for a surgery that normally costs $10,000. The family only pays $2,000.

The hospital's normal price for the surgery is still $10,000. The government won't use the $2,000 discount price to decide how much to pay the hospital for other patients.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 127445 Discounted Payments Exclusion

Notwithstanding any other provision of law, the amounts paid by parties for services resulting from reduced or waived charges under a hospital’s discounted payment or charity care policy shall not constitute a hospital’s uniform, published, prevailing, or customary charges, its usual fees to the general public, or its charges to non-Medi-Cal purchasers under comparable circumstances, and shall not be used to calculate a hospital’s median non-Medicare or Medi-Cal charges, for purposes of any payment limit under the federal Medicare Program, the Medi-Cal program, or any other federal or state-financed health care program. (Added by Stats. 2006, Ch. 755, Sec. 1. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

discounted paymentcharity care policyuniform, published, prevailing, or customary chargespayment limitMedicare ProgramMedi-Cal program

Related Statutes

  • § 127461 Discounted Payment Policy Exclusion
  • § 127400.5 Charity Care Discounted Payment Definitions
  • § 127435 Hospital Discount Charity Policies
  • § 101655 Central Coast Hospital Authority
  • § 101656 Natividad Medical Center Governance

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Health and Safety Code. Section 127445.
View Official Source