A Pound of Flesh: Hospital Billing, Debt Collection, and Patients' Rights

Publication Date: March 2007

Publisher: Families USA

Author(s):

Research Area: Health

Type: Brief

Abstract:

For more and more families across America, paying for health care is becoming increasingly difficult. Fewer workers receive health coverage through their jobs. And those who do have employer-based coverage must pay ever-increasing cost-sharing amounts out of pocket. What's more, in an ironic twist, the uninsured, and sometimes the underinsured, are charged full price for their medical services -- a price that is significantly higher than what insured patients are charged. In the current health care system, insurance companies negotiate with health care providers for lower prices. These insurance companies can obtain discounts that are, in some cases, up to 40 to 60 percent off the full price, in exchange for patient referrals. Uninsured and underinsured patients, who do not have the same negotiating power, usually must pay full price for their health care. Not surprisingly, more and more families must go into debt to pay for the health care services they need. State lawmakers and advocates have recognized this alarming trend and have started to take action to ensure that low-income, uninsured, and underinsured Americans are charged fair prices for their care and are protected from aggressive debt collection practices. This issue brief provides an overview of some of the progressive reform measures that state policymakers have implemented to aid families struggling with medical debt.