Free Republic

Charitable hospitals that treat uninsured children will now be fined and receive harsher scrutiny when applying for non-profit, tax-exempt status. The Internal Revenue Service’s Section 501 goes into effect under Obamacare. The provision stipulates new financial penalties for charitable, tax-exempt hospitals that treat uninsured poor Americans. Currently, 60 percent of American hospitals fall under this category. Analysts explained that charity serves as a major deterrent for the uninsured to enroll in Obamacare, so the Obama administration is fining charitable hospitals. “Failure to comply, or to prove this continuing need, could result in the loss of the hospital’s tax-exempt status. The...

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 heath...