Did you know that if you are uninsured you could end up paying higher than what the health insurance companies would pay for the same treatment? CBS interviewed the Ferlini and Starbuck families and found that hospitals charge uninsured patients two, three four or more times what an insurance company would pay for.
KB Forbes an activist running a nationwide campaign on behalf of the uninsured says that this problem is common. "Basically, hospitals charge uninsured people four or five times more than what they would accept as payment in full from a health insurance company. Simply put, it's price-gouging," says Forbes.
Forbes analyzed the Ferlini's hospital bill, while St. Joseph's was billing Ferlini $246,000, it would accept just under $50,000 as full payment from a health insurance company for the same treatment.
Federal law requires hospitals to charge every patient the same, whether they have health insurance or not.
The University of Tennessee Medical Center told 60 Minutes that hospitals do charge patients who receive the same services the same amounts.
So why then do the uninsured patients get charged higher than the insured?
That's because hospitals are able to accept different payments from different patients. Hospitals give significant discounts, as much as 75 percent off the list price, to insurance companies for the patients they cover. Medicare and Medicaid patients are charged even less. Only the uninsured are charged the hospital's full price.
Gerard Anderson, a professor of publich health at John Hopkins University tells 60 Minutes that these high charges are typical. "I think virtually all hospitals do this. They charge two and four times as much. Some of them charge 10 times as much."
Anderson notes that hospitals keep their price list largely secret, so there's no way to do any comparative shopping. "And because you can't do comparative shopping, the hospital has no reason to control prices," Anderson explains.
Yes, the government and the health care industry are trying to address the issue. But in thec meantime, going without health insurance can put you on a major financial risk, particularly with the rising health care costs.
To find out where you can get affordable, low cost or no cost health insurance if you're working and uninsured, click here.
If you're unemployed and without health insurance, click here.
If you continue to find it hard to get health care coverage, make sure you look into the Charity Care Program of your hospital and find out if you qualify.
See full feature at 60 Minutes: Hospitals - Is the Price Right?
