Friday, February 20, 2004
Hospitals can provide discounts to uninsured
The Bush administration encouraged hospitals on Thursday to give discounts to uninsured patients and to financially needy Medicare beneficiaries.
Such discounts are permissible under federal fraud and abuse laws, the government said, in a clarification requested by the hospital industry.
Hospitals have been criticized in the last two years for charging uninsured people much more than they charge people with employer-sponsored health insurance. Group health plans often negotiate rates lower than the prices charged to people without insurance.
Tommy G. Thompson, the secretary of health and human services, explained the administration's position in a letter to the American Hospital Association.
"Hospitals can provide discounts to uninsured and underinsured patients who cannot afford their hospital bills and to Medicare beneficiaries who cannot afford their Medicare cost-sharing obligations," Mr. Thompson said. "Nothing in the Medicare rules or regulations prohibits such discounts."
Mr. Thompson encouraged hospitals to provide discounts. Dennis G. Smith, acting administrator of the federal Centers for Medicare and Medicaid Services, said: "Serving the uninsured is a high calling. We want to encourage our partners in the private sector to help."
That's great and all, but wouldn't it just be easier to provide universal coverage to everyone?
posted by chris at 12:37 PM
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