Wednesday, April 8, 2015

Lawmaker wants to address medical billing surprises


Bill would allow patients to take all balance billing cases to mediation


March 25, 2015

The Texas Legislature may be on its way to helping millions of Texans who get unexpected medical bills every year due to confusion over which facilities and which doctors are part of their insurance network.

A tip of the hat goes to state Sen. Kelly Hancock who has introduced Senate Bill 481, which got a hearing Tuesday in the Business and Commerce Committee. The Republican from North Richland Hills wants to expand a mediation program that helps settle the bills when a doctor working at a hospital doesn't accept the same insurance plans as that hospital.

Millions of Texans every year experience this disconnect. The insurance company tells them a hospital is part of the insurance network, but then they see a doctor there who is out-of-network. The insurance company refuses to pay the doctor's full-fee, so the patient gets an unexpected bill.

A few months ago I wrote about this scenario and readers flooded me with mail about their experiences with what is known as balance billing. These patients developed elaborate plans to make sure all of the doctors involved were in-network, only to discover the hospital made a last-minute substitution that cost the patient thousands of dollars. The practice was also the subject of several New York Times stories.

Surprise medical bills are the No. 1 cause of bankruptcy and bad credit ratings. Since doctors focus on treating patients rather than who will pay them, patients frequently don't know that their insurance won't pay for the doctor until weeks after treatment.

Hancock wants to expand a state law that allows patients to take some of those bills to mediation so that patients can appeal EVERY bill they receive from out-of-network doctors working at in-network hospitals. The bill would also help with emergency room visits that the patient could not have predicted.

In addition to my endorsement, the Texas Association of Business, the Center for Public Policy Priorities and AARP all think this is a great bill.

"It is our hope that the Legislature will recognize this serious problem and quickly pass this bill to address it," the TAB's Bill Hammond said. "The practice is not fair for consumers and is not fair for businesses, who struggle to provide health insurance for their employees."

Hancock heard the complaints, and while his bill will not end the practice, it does expand the current law to cover more cases. If he can rally his fellow lawmakers to pass it, it will be a step in the right direction.

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