Should Charities, Hospitals, etc., Be Allowed to Pay Premiums to Insure High Cost Patients?

hospital magnify 300“It is a conflict of interest for hospitals and drug companies to pay patients’ premiums and cost-sharing for the sole purpose of increasing utilization of their services and products,” said Karen Ignagni, head of America’s Health Insurance Plans, the health-insurance industry’s trade group.

The group’s general counsel, Joseph Miller, said laws regulating tax-exempt organizations could limit activities aimed at enriching themselves or another organization. (WSJ)

Comments (9)

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  1. Ken says:

    I can’t understand why Sebelius allowed this.

  2. Henry says:

    I think it’s called desperation!

  3. Stan says:

    This is going to be a disaster.

  4. Ian Random says:

    Maybe, if the minimum purchase length was 12 months, if they might be more agreeable.

  5. Floccina says:

    So if medicaid sets the rates low enough hospitals will find it beneficial to buy insurance for certain patients. I find that quiet interesting and amusing.

  6. Bradley says:

    Altogether, 10% of hospitals’ surgical procedures account for roughly a fifth of Medicare spending. Now we see how hospitals are exploiting these high-pay cases.

  7. Thomas says:

    A heart transplant alone costs roughly $800,000.

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