ALBANY, N.Y., March 31 – Sweeping changes setting up statewide standards, requiring hospitals to aid uninsured patients and curb aggressive collection practices,were reached under an agreement in the new state budget.

Assemblyman Alexander B. Grannis (D-New York), who had introduced legislation on the issue, said the agreementalsocalls for hospitals to provide detailed reportingon the use of funds as a condition of access to the states $850 million Indigent Care Program.

Under this historic agreement, Grannis said, New Yorkers without health insurance will no longer have to face bankruptcy or mountains of medical debt to getthe health care they need.This agreement sets limits for the first time onwhat hospitals cancharge patients of limited means and adds a number of critical protections for consumers.

The agreement:

Requires hospitals to provide varying degrees of financial assistance to uninsured patients ranging from free or nominal cost care for those earning less than 100 percent of the federalpoverty level (FPL) ($9,570 a year for a single person) to a discount off the rates governmentand private insurers pay hospitals for services for patients at 350 percent of FPL ($23,975 annual income);

Limits the amount hospitals can charge patients with incomes up to 300 percent of FPL ($49,800 for family of three) to the rates the government and health plans pay;

Requires hospitals to offer patients installment plans for the payment of outstanding medical bills after the discounts are calculated in which monthly payments are capped at 20 percent of the patients income;

Requires hospitals to inform patients of their financial aid policies and include notices of the availability of assistance on bills;

Requires hospitals to notify patients of the availabilityof assistance prior to startingcollection actions;

Establishes new reporting requirements to provide greater accountabilityfor the annual expenditure of $850 million in state funding, provided through the state Health Care Reform Act (HCRA) program.

Richard Kersch, executive director of Citizen Action of New YorkState, expressing support for the agreement said,New York patients will finally get relief from the nightmare of huge, unpayable hospital bills.Hospital patients will receive bills that are based on their ability to pay andbe charged no more than what hospitals would charge insurance companies.For the first time, hospitals in New York will be requiredto provide financial assistance to hard pressedhospital patients as a condition of the hospitals receiving $847 million in taxpayer funds to make upfor unpaid bills.