Hospitals Will Give Price Breaks To Uninsured, if Medicare Agrees They Concede Many Charges Aren’t Fair To the Needy, but Blame Federal Rules
1/26/2003 Lucette Lagnado The Wall Street Journal Under pressure from lawmakers and consumer advocates, the hospital industry said it would consider making broad price cuts for the uninsured -- provided the federal government approves. The announcement by the American Hospital Association included a stark admission that some hospital billing and collections practices are unfair to needy patients. But even as some big hospitals scramble to curtail their most aggressive tactics, such as putting liens on debtors' homes, the trade group is also blaming much of the problem on Medicare. In a letter delivered Tuesday to the Department of Health and Human Services, the hospital group said Medicare regulations "make it far too difficult and frustrating" for hospitals to reduce prices for people who can't afford health care. The letter asks the agency, which oversees Medicare, the federal health-care program for the elderly, to change or clarify its rules so that hospitals "have the ability to do what they can to respond to the needs of these patients." In a document filed in support of its letter, the trade group also said it would urge its 4,800 member hospitals to adopt a set of voluntary guidelines on billing and collections. At the heart of the issue is the hospitals' common practice of charging full listed prices to the nation's 43.6 million uninsured patients. Meanwhile, other patients enjoy steep discounts negotiated on their behalf -- either by private insurers and HMOs or by government programs such as Medicare and Medicaid, the federal-state [...]