New York Hospitals Often Charge Uninsured Patients Double The Cost Of Care They Receive, Report Says

Main Category: Health Insurance / Medical Insurance
Article Date: 23 Mar 2006 - 8:00 PDT

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Uninsured patients in New York state hospitals are charged more than double the cost of the care they receive, according to a study released Thursday by Citizen Action of New York, the Albany Times Union reports (McDonald, Albany Times Union, 3/17). Using data from the state Department of Health, CANY found that hospitals in the state charged uninsured patients 2.3 times the actual cost of inpatient care in 2003 and overcharged by at least $1.1 billion for inpatient and outpatient care (Kriss, Syracuse Post-Standard, 3/17). Richard Kirsch, executive director of CANY, said that few patients actually pay the entire cost of hospital stays because most have insurance or qualify for Medicaid or Medicare. However, the uninsured and those with insurance plans that have not negotiated hospital discounts are left with higher charges (Albany Times Union, 3/17). The Healthcare Association of New York State, the state's hospital trade group, said the report's conclusions are overblown but agreed that legislation that would require discounts for the poor and uninsured needs to be enacted. Daniel Sisto, president of the health care association, said, "Insurance companies want tremendous discounts, so hospitals were raising their charges to give themselves bargaining room. But no patient should have a fear of hospital charges stand in the way of receiving quality health care." Sisto said the association backs proposals by Gov. George Pataki (R) and the Republican-controlled Senate. A bill from the Democrat-controlled Assembly passed last week. Kirsch said the Republican legislation does not prevent hospitals from overcharging (Syracuse Post-Standard, 3/17).

The study is available online. Note: You must have Adobe Acrobat to view the file.

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