Money for Illegal-Immigrant Emergency Care Running Out

One of the most pervasive lies about health-care reform is that it provides free coverage for illegal immigrants. The claim, circulated in a long chain e-mail, is categorically untrue. In fact, no one gets free health care with health reform. But the question of providing emergency care for those in the country illegally is a tricky one. Currently, illegal immigrants can receive health services at hospital emergency rooms. “Hospitals are required by law to assess and stabilize anybody who walks through the emergency-room door," say Richard Coorsh of the Federation of American Hospitals, referring to the Emergency Medical Treatment and Labor Act of 1986. Hospitals simply aren't allowed to refuse treatment in emergency situations, regardless of the patient's immigration status. It's part of our social contract, and anything else would be morally unacceptable. Unfortunately for hospitals, though, most illegal immigrants can’t pay for expensive hospital bills (because they don't have health insurance), so the costs associated with their treatment must be written off by hospitals as a loss. Lawmakers recognized this burden on hospitals, physicians, and ambulance services, and passed a provision—known as Section 1011—in the Medicare Modernization Act of 2003, which allowed some reimbursement for the costs of treating illegal aliens in emergency situations. It provided a sum of $250 million for each year between 2005 and 2008.

Today, however, the Bureau of National Affairs has announced that Section 1011 funding is running out. According to the firm contracted to administer the funds, TrailBlazer, 10 states—have already exhausted their available funds Hospitals simply have to eat those costs—an outcome that is particularly unpopular with hospital administrators in border states. It's also bad policy. Those losses ultimately have to be recouped in other areas of operation. They increases operating costs, which in turn increases the cost to paying consumers. Opponents of using taxpayer money to offset the costs of vital treatments for people in the country illegally may find themselves paying for it, albeit indirectly, anyway.