Summarize this content to 2000 words in 6 paragraphs A recent video posted by a California dad spotlighted the state’s hospital billing policies, which can actually leave you owing more if you have health insurance than if you were uninsured.Robby Witt, a 33-year-old content creator living in Los Angeles who goes by @TheSephew on Instagram, saw his hospital bill for his daughter’s emergency allergic reaction go from $600 to nearly $1,300 when he gave the provider his health insurance information.Why It MattersThe health insurance industry has been under intense scrutiny in the months following the killing of UnitedHealthcare CEO Brian Thompson.Some Americans have grown increasingly frustrated, as they perceive health insurers valuing profit ahead of human lives. Luigi Mangione, suspect in the Thompson killing, has been called a hero in some internet circles.Today, roughly 14 million people, or 6 percent of Americans, face medical debt of more than $1,000, according to the Peterson KFF Health System Tracker.
Children’s Hospital Los Angeles is pictured on February 6.
Children’s Hospital Los Angeles is pictured on February 6.
ROBYN BECK/AFP via Getty Images
What To KnowUnder California’s Hospital Fair Pricing Policies law, Charity Care programs offer special discounts to those who meet specific financial criteria, mandating that hospitals provide free or discounted care to uninsured patients earning up to 400 percent of the federal poverty level.While proponents argue this prevents some Californians from facing emergency health care bills they can’t afford, some argue it unfairly penalizes those with insurance.Insured patients often end up with higher bills due to negotiated rates between hospitals and insurance companies as well as administrative costs and out-of-network charges.”So if I have the incentives straight here, if I want to pay less for medical care, I should cancel my insurance if my daughter needs lifesaving medical care? … That is special. That is a special law,” Witt said in his Instagram video.What People Are SayingAlex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Some states like California have laws that require hospitals to have a written policy on any discounted care rates or charity patient procedures for those who are at or below 400 percent of the federal poverty level. This is a wise move on both the part of the government and the institution, as it outlines clear rules for patients to understand when considering their financial obligations for receiving care. A more recent bill expanded this criteria to those above the federal poverty level, and that’s where we’re seeing discrepancies posted on social media from patients realizing the ‘uninsured rate’ was cheaper than the insured one.”Kevin Thompson, finance expert and founder/CEO of 9i Capital Group, told Newsweek: “These laws were intended to establish fair and reasonable pricing for insured, uninsured, and qualified patients while ensuring broader access to care. However, as we’ve seen, the reality has been far from fair.”Chris Fong, Smile Insurance CEO and a Medicare specialist, told Newsweek: “We could potentially see higher premiums in states with laws such as this one. Insurance companies in these states will be pressured to have higher payout for medical services given the recent news highlighting the discrepancy in uninsured medical cost versus the cost incurred by somebody who has health insurance.”What Happens NextMedical facilities are geared toward serving people’s health care needs, but they also may take certain measures to increase profit, Beene explained, as he called for “real reform” to the U.S. health care system.”If they’ve experienced certain services that are consistently more difficult to earn revenue from the insurer or patient on, they may qualify it for a vastly reduced rate if the patient pays it upfront,” Beene said. “While this may provide more clarity for the hospital and its staff, it can be confusing to those receiving care and cause them to reflect on just how valuable health insurance is in our current landscape.”Thompson said the challenges insured and uninsured patients alike experience in getting affordable health care highlight the need for structural reform within the industry.”I no longer blame the people working for these providers and companies—they’re just doing their jobs,” Thompson said. “The real issue lies with politicians and those who profit from maintaining the status quo. We need real reform, and any administration that delivers it will leave a lasting legacy.”
