TALLAHASSEE, Fla.--(BUSINESS WIRE)--Two of Florida’s leading consumer advocacy organizations released results from a statewide poll today showing a majority of Florida families are not prepared to pay unexpected out-of-pocket medical costs. These results underscore the dire consequences of SB 1122, a bad bill pending before Florida Gov. Charlie Crist to allow more health care providers to “balance bill” patients and demand out-of-pocket charges for medical care that a patient’s health plan has already paid for.

According to a statewide survey of 625 registered voters conducted May 14-18 by Mason-Dixon Polling & Research:

• 48 percent of Floridians would be unable to pay an unexpected medical bill of $1,000,

• 62 percent would be unable to pay a bill of $5000,

• Only 1 in 5 Floridians said they would be able to pay, and

• 18 percent of said they were not sure. The margin for error is +/- 4 percent.

“By dismantling the preferred provider networks that allow health plans to negotiate with doctors to win lower prices for patients, this bill would greatly increase the out-of-pocket costs borne by Florida patients and their families,” said Brad Ashwell, democracy & consumer advocate for Florida PIRG. “This survey shows many families would be unable to pay unexpected medical bills, but the ‘balance-billing bill,’ SB 1122, would lay a landmine that families will have to navigate around to avoid suffering a financial catastrophe.”

Today, health plans contract with credentialed doctors to create a “network” of doctors who have agreed to reduced rates for providing medical care. But if SB 1122 becomes law, doctors who are not members of health plan networks – and have not agreed to reduced rates – will be entitled to receive the same payment benefits from health plans as a doctor who is not a network member. This change would cause health networks to unravel, resulting in higher health costs for businesses, workers, retirees and individual patients.

According to the poll, 84 percent of Floridians said they believe it is important to get as many doctors as possible to participate in healthcare networks to keep costs down. Further, 86 percent said it is important for patients to have the right to negotiate with healthcare providers, particularly on expensive procedures.

Without strong PPO networks, health coverage will no longer provide certainty or peace of mind against unexpected out-of-pocket charges, Ashwell said. Doctors outside networks will be able to pocket a check from a patient’s insurer and then bill the individual patient for the balance of their fee – with no mandated prior disclosure of what that fee will cost.

This was also the criticism of Sean Shaw, Florida’s Insurance Consumer Advocate, who last week urged Gov. Crist to veto SB 1122 because it “would be a backward step from attempts to corral the spiraling cost of health care and more specifically, the direct cost to consumers.”

Federal law prohibits balance billing by providers of services covered by Medicare and Medicaid, but SB 1122 would not prohibit doctors from balance-billing Florida patients.

In his letter to Gov. Crist, Shaw vividly illustrated the consequences of balance-billing by citing the case of an actual consumer who was balance-billed for more than $13,000 after his son required emergency surgery – even though he had health insurance.

Walter Dartland, executive director of the Consumer Federation of the Southeast, said this consumer’s unfortunate story would become all too common if SB 1122 becomes law.

“If this bill becomes law as written, more patients who go to a doctor for medical care will be hit by unexpected bills, and more consumers will see their credit damaged and their families targeted by collections agencies and even lawsuits,” Dartland said. “That appears to be the intent of this bill – it’s why the bill’s supporters torpedoed attempt after attempt to insert consumer protections against balance billing during the legislative process.

“Gov. Crist ought to veto this bill and protect the people of Florida from this dangerous measure that could financially cripple thousands and thousands of families.”

Contacts:

Consumer Federation of the Southeast
James VanLandingham, 850-222-1996

Business Wire