Uninsured Are Charged More In Texas

If you've ever felt aghast looking over a hospitalto charge poor and uninsured patients less, but
bill -- somehow sure the numbers couldn't possiblythe results have yet to be seen. Some question
be right -- you're not the only one. According to awhether the recommendations are applied at all
2004 study, published by the journal Healthby most of the hospitals, including those in Texas,
Affairs, those lacking health insurance are chargedand the fact it's not mandatory is a problem.
an average of 2.57 times more by U.S. hospitalsGerard Anderson, director of the Center for
than those with insurance, a discrepancy that hasHospital Finance and Management at Johns
been steadily increasing since 1984.Hopkins University's School of Public Health -- and
Texas is no exception. In fact, residents of Dallas,study author -- has served as an advisor for
Houston, and the rest of the state are more likelyseveral lawsuits already. He encourages advocacy
to be uninsured than the average American, asgroups to move forward with legal action. "The
just over 25% of Texans lack coverage. In somemark-up on hospital care for these individuals,
areas of the state, it's closer to one in three, andespecially for those who can afford it least, is
that doesn't include those consideredunjustifiable," said Anderson.
under-insured, or those insured by governmentThe highest discrepancy was found in the amount
programs.for-profit hospitals charged, versus estimated
Like many in Texas, a good percentage ofcosts by Medicare. This all makes slightly more
uninsured Americans are working individuals whosense after learning that, generally, hospitals in the
can generally support themselves and theirassociation determine costs by a list called the
families, but who cannot afford to keep pace withchargemaster, which is, technically, the same for
the rising cost of health care. Health insuranceeveryone. Insurance companies then negotiate
premiums have increased an average of 15%with hospitals on behalf of their clients to reduce
over the last five years, more than triple thethese charges. It is widely believed hospitals, as
inflation rate. One-third of companies did not offermany other businesses would, however, greatly
coverage in 2004, and even when it was offered,inflate initial costs in anticipation of this negotiation.
there was no guarantee that employees could"When a hospital presents a bill that has charges
afford the premiums.on it, those charges are the same for everyone.
"That's me exactly," said Anne, a 27 year-old cityWhat is different is how much insurers may
employee in Kansas City, Missouri. "I couldn'tnegotiate in terms of discounts with hospitals,"
afford the premium, so I had to get this low-cost,Amber Coyle, AHA policy analyst said.
ridiculously low-coverage plan that will basically onlyThe American Hospital Association also claims the
help me if I get in a car wreck."research is inaccurate, that it is out-of-date and
Employee spending on health care increased anmethodologically flawed. Hospitals needed the U.S.
average of 143% between 2000 and 2005. ItCenters for Medicare and Medicaid guidance to
does not seem a coincidence, then, that rates forinstitute discounts for the uninsured, said AHA,
the uninsured have also jumped the most sincewhich did not exist when the study was
2000. The problem is further exacerbated byconducted.
what has become a cyclical predicament,The claim is that hospitals were unsure if they
particularly in cities like Dallas and Houston:could charge different patients different amounts
uninsured residents of rural areas, where there isbefore this guidance, but many advocates
lower quality care and less access to financial aidcontend it does not take bureaucratic policy to
programs, travel to the city for their medicalknow that charging those who are financially less
needs, which can then be covered by hospital orcapable of paying more is simply wrong and
county programs. This, in turn, drives up thecounterproductive.
average charge of any given service provided byThe only issue opposing groups seem to agree on
those hospitals, which contributes to increasedis that increasing the number of those with
costs for health insurance companies, which thencoverage would dramatically deflate the situation.
raises premiums.This could be done by extending government
What all this translates into, unfortunately, is evenprograms, including Medicaid -- which is currently
higher bills for those who are barely getting by asexperiencing drastic cuts and instituting more
it is if something does happen.affordable private health insurance policies. Either
Sound unfair? Advocacy groups think so too.way, until then (or "if then"), keep yourself
More than 60 class-action lawsuits have been filedhealthy, whether or not you're insured.
over the issue. In response, the American HospitalWhat affects your health also will eventually
Association (AHA) has instituted a voluntary policyaffect your bank account.