IU Health promised to freeze prices in December, the same month Bloomington-area patients were sent a letter about changes to billing. Now the change is showing up on bills, and it's doubling what patients are charged for the same services.
to get costs in line with national averages. According to a 2020 Rand study, IU health prices between 2016 and 2018 exceeded the national average by 33%. has reported facility fees have raised the ire of patients and consumer advocates for a long time and go back to a Medicare rule from more than 20 years ago.
According to the foundation, hospital executives say the additional dollars help defray overhead, salaries and expenses related to meeting"stringent standards set by the federal government." A charge for a service provided in a physician’s office represents the cost of using the office space and the physician’s work, while charges for a service provided in the hospital may include the physician’s fee as well as a facility fee “that represents the cost of utilizing the hospital space where the service is performed.”
“CMS does not regulate the charges established by healthcare entities, including charges established for use of … facilities ,” the agency said. “Medicare does not dictate a provider’s charge structure."
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