A Broad Coalition Backs New York Legislation to Cap Medical Bills
A broad coalition in New York is backing state legislation that would impose a first-in-the-nation cap on medical bills — aimed at hospitals that own or house outpatient clinics and charge higher rates than private practices.
The “Fair Pricing Act”
Under the “Fair Pricing Act”, patient billing costs would be capped at 150% of rates set by the federal Medicare program for procedures for senior citizens.
Joint Committee Backing the Bill
A joint committee consisting of the powerful building workers union Local 32 BJ and an arm of the Real Estate Board of New York is bankrolling a seven-figure media ad blitz to build support for the bill.
TV Ad Campaign
The 30-second TV ad, paid for by the 32BJ Labor Industry Cooperation Trust Fund, gives examples showing glaring disparities in medical billing costs. The ad says, “Two patients walk into their local doctor’s offices for the same procedure but pay a very different price. This is happening all over New York because big hospitals are taking over independent doctors’ offices and driving up the cost of routine procedures.”
Examples of Disparities
Currently, the bill for a child’s flu shot at a doctor’s office could be $23, but at a hospital outpatient clinic, it’s $183, advocates say. Administering IV fluid to a senior patient at a doctor’s office is $566, less than half the $1,719 charged at a hospital-run outpatient clinic. An MRI to check for stomach pain is $1,308 at a hospital clinic, more than double the $659 at a doctor’s office.
Groups Backing the Bill
Among the groups backing the proposed law include the NAACP, Hispanic Federation, Asian-American Federation, and NY Immigration Coalition.
Impact of the Bill
Supporting the proposed bill is a joint committee consisting of the workers’ union Local 32 BJ and an arm of the Real Estate Board of New York. “Big hospitals are treating routine medical services like a game of monopoly, where every time a patient lands on a building they own a higher price is charged,” said Manny Pastreich, president of Local 32BJ of the Service Employees International Union.
State Senator’s Support
State Sen. Liz Krueger (D-Manhattan), who chairs the influential finance committee, just introduced the “Fair Pricing Act.” “We cannot let Big Hospitals become the next Big Oil or Big Steel, with monopoly control over everything and people forced to pay more for the same basic procedure. By capping the cost of outpatient services through the Fair Pricing Act we can level the playing field and ensure that patients have access to the same fair price wherever they go for their healthcare needs,” said Krueger.
Enforcement and Penalties
State agencies — including the state attorney general — would enforce the caps and impose penalties for law-breaking and “deceptive practices.”
Opposition to the Bill
The lobbying group for hospitals opposes “the terrible bill.” “Hospitals and doctor’s offices are not the same. Only hospitals deliver care 24/7 and accept any patient who walks through their doors. Hospitals are also subject to myriad regulatory requirements that doctor’s offices are not,” said Greater New York Hospital Association president Kenneth Raske.
Conclusion
The proposed bill aims to address the issue of medical billing disparities by capping costs at 150% of Medicare rates for senior citizens. If passed, the bill could have a significant impact on the healthcare industry, particularly for hospitals that own or house outpatient clinics.
FAQs
Q: What is the purpose of the “Fair Pricing Act”?
A: The bill aims to cap medical billing costs at 150% of Medicare rates for senior citizens to address disparities in medical billing costs.
Q: Who is backing the bill?
A: A broad coalition of groups, including the NAACP, Hispanic Federation, Asian-American Federation, and NY Immigration Coalition, as well as the workers’ union Local 32 BJ and an arm of the Real Estate Board of New York.
Q: What are the examples of disparities in medical billing costs?
A: The bill cites examples such as a child’s flu shot costing $23 at a doctor’s office versus $183 at a hospital outpatient clinic, and administering IV fluid to a senior patient costing $566 at a doctor’s office versus $1,719 at a hospital-run outpatient clinic.
Q: What are the implications of the bill?
A: If passed, the bill could have a significant impact on the healthcare industry, particularly for hospitals that own or house outpatient clinics, and could lead to lower medical expenses for patients and insurers.
