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WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL) today called for reform
of hospital billing and debt collection practices and for universal health
care coverage during a hearing of the Commerce Subcommittee on Oversight
and Investigations.
During
today’s hearing, Schakowsky welcomed Chicagoans who have traveled to Washington
to attend the hearing because they have been personally and seriously affected
by these practices, and added, “Some hospital billing and debt collection
practices can turn a medical injury into a financial nightmare.”
Schakowsky
pointed to Lesszest George, who is a working single mother. Her 19-year
old son spent 2 weeks in Illinois Masonic Hospital after he was shot in
a case of mistaken identity. Ms. George received a $52,000 bill to
cover the expenses of her son’s treatment, and, when she was unable to
receive assistance under the Victims’ Assistance Fund, the hospital filed
a lawsuit against her.
“We
need to address charity care policies, discriminatory pricing and abusive
collection practices,” Schakowsky said. She did, however, recognize Cook
County hospital for working with the uninsured and under-insured to help
them find solutions in order to meet their financial obligation “so that
the focus is on getting well – not dealing with collection agencies and
lawsuits.”
“We
must recognize that our health care system itself has failed Lesszest George
and many other Americans. Despite working full-time, they are uninsured
and facing medical debts that will be hard to dig out from and that makes
it difficult to care for their families’ ongoing needs,” Schakowsky added.
She
concluded, “We in Congress can act to solve these problems or we can act
to exacerbate them. High-deductible plans and Health Savings Accounts
will shift more costs onto individuals and families, increasing the likelihood
of medical bankruptcy. Limited tax credits for the purchase of inadequate
individual policies will not guarantee that policy holders will be able
to pay their bills. Instead, it is time that we enact universal health
care that assures access to comprehensive, affordable care.”
Below
is the written text of Schakowsky’s statement:
STATEMENT
OF REP. JAN SCHAKOWSKY
SUBCOMMITTEE
ON OVERSIGHT AND INVESTIGATIONS
“A
REVEW OF HOSITAL BILLING AND COLLECTIONS PRACTICES”
June
24, 2004
Mr.
Chairman, I want to thank you for holding this hearing on hospital billing
and collection practices. Many of the issues that we will talk about
today are the focus of attention in Illinois and are being considered by
the legislature, investigated by the state attorney general’s office, and
debated in the hospital community and the public. I want to thank
Mr. Greenwood, Mr. Dingell and Ms. DeGette for including a report on the
Chicago situation, “A Failing Mission: The Decline of Charity Care
at Resurrection Hospitals,” in the hearing record. I would like to
ask unanimous consent to include a statement by the Service Employees International
Union that also addresses billing and collection practices in Illinois
in the hearing record.
In
fact, several Chicagoans have traveled here today to attend this hearing
because they have been personally and extremely seriously affected.
I want to recognize them. Zaida Perez was a hospital nurse for 21
years. Her troubles began when her working but uninsured husband
was in a car accident in January 2003 and admitted to Advocate Lutheran
General Hospital. Two days later, her father died and she faced $13,000
in burial expenses. She was diagnosed with breast cancer and, fortunately,
was treated at Cook County Hospital, which helped arrange payment for her
bills. In March, Lutheran General sent her husband a bill for $12,000.
Although she asked for help in devising a payment plan, no help was given
and in April, the threatening calls began. After a payment plan was
finally worked out and payments were being made, she was sued. Her
husband’s wages were garnished at the rate of $75 a week until she finally
got legal assistance to erase her debt.
Lesszest
George is a working single mother. Her 19-year old son spent 2 weeks
in Illinois Masonic Hospital after he was shot in a case of mistaken identity.
Asked after the surgery who would be responsible for the bill, Ms. George
signed, thinking that her son was covered by insurance but not realizing
that he had lost that coverage upon graduation from high school.
She received a bill for $52,000. The hospital did work to help her
apply under the Victims’ Assistance Fund, but she was denied. Instead
of working with her for charity care, they have filed a lawsuit.
Her son is now doing well but is still uninsured because, as a part-time
student and part-time worker, he doesn’t qualify for insurance.
Their
stories underscore that hospital billing and collection practices can turn
a medical injury into a financial nightmare – as in the case of Lutheran
General and Illinois Masonic. Or, as in the case of Cook County,
those practices can provide the necessary financial assistance so that
the focus is on getting well – not dealing with collection agencies and
lawsuits.
We
need to address charity care policies, discriminatory pricing and abusive
collection practices, but we must also recognize that our health care system
itself has failed Zaida Perez, Lesszest George and many other Americans.
Despite working full-time, they are uninsured and facing medical debts
that will be hard to dig out from and that make it hard to care for their
families’ ongoing needs. As we will hear, the problems of medical
debt and the lack of affordable health care are most acute for the uninsured.
They are more likely to forego care, are charged more for care (in hospitals
and in other settings), and are the most likely to face medical bankruptcy.
But being covered by insurance isn’t a guarantee by any means. As
Sara Collins points out in her excellent testimony, more than 1 in 3 of
the continuously insured reported problems paying medical bills.
We know that access to affordable health care – benefits, cost-sharing
requirements, and discounts – varies not just by whether you are insured
or uninsured but on the type of insurance coverage you have. The
bigger the group, the better the coverage.
We
in Congress can act to solve these problems or we can act to exacerbate
them. High-deductible plans and Health Savings Accounts will shift
more costs onto individuals and families, increasing the likelihood of
medical bankruptcy. Limited tax credits for the purchase of inadequate
individual policies will not guarantee that policy holders will be able
to pay their bills. Instead, it is time that we enact universal health
care that assures access to comprehensive, affordable care. |
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