The article profiles an underinsured woman who was diagnosed with leukemia:
When Lisa Kelly learned she had leukemia in late 2006, her doctor advised her to seek urgent care at M.D. Anderson Cancer Center in Houston. But the nonprofit hospital refused to accept Mrs. Kelly's limited insurance. It asked for $105,000 in cash before it would admit her.
Why are hospitals requiring payment upfront?
Because of unpaid medical bills. Hospitals are losing a lot of money. Unpaid medical bills cost hospitals $31.2 billion in 2006.
Here’s what the article says about growing unpaid medical bills:
The bad debt is driven by a larger number of Americans who are uninsured or who don't have enough insurance to cover medical costs if catastrophe strikes. Even among those with adequate insurance, deductibles and co-payments are growing so big that insured patients also have trouble paying hospitals.
Letting bad debt balloon unchecked would threaten hospitals' finances and their ability to provide care, says Richard Umbdenstock, president of the American Hospital Association.
What can you do to prevent paying upfront?
While it doesn’t seem like a sure thing, it does appear that those with comprehensive health coverage are much more likely to avoid prepaying for treatment. When choosing a health insurance plan, make sure you’ll be taken care of if catastrophe strikes.
When choosing a health insurance plan, you’ll also want to familiarize yourself with health care plan policy terms.
What do you think about requiring the underinsured and uninsured to prepay for treatment? Is it an unfair practice or are hospitals just doing what is required in order to keep their doors open?
Digg
StumbleUpon
Facebook
Delicious