Wednesday, November 02, 2005

Hospitals Sued for Overcharging Uninsured

Hundreds of hospitals in 27 states are being sued for charging uninsured patients more than other patients. The Providence hospital chain in Oregon settled one such lawsuit Tuesday.

One patient, Gerry Hugo, paid $13,000 for a routine hernia operation. If the settlement is finally approved, he will receive a refund of $7,300.

According to this AP Story, the settlement will result in charges for tens of thousands of low income patients for the last four years being recalculated, as well as for the next two years.

Of course, if we had true transparency in healthcare markets, the price of a routine hernia would be common knowledge, like a brake job or oil change is.

Under a system of universal healthcare, a single payer would know how much each and every hernia operation cost in every hospital in the United States. A single payer would use its enormous market power to push costs down for everybody. And Gerry Hugo would not have to sue for fair treatment.

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