By Brad White, Founder, Our Nation’s Heroes Foundation
It’s no surprise that rising health care costs are top of mind for many Californians. In the last decade, health care spending in California grew faster than our state’s economic growth.I have experienced this first hand after 2 trips to the Emergency Room then being hospitalized twice in the last year and a half. The first time in 2022 for 4 days for Congestive Heart Failure, High Blood Pressure and Diabetes; the second time I was hospitalized recently in June-July 2023 for 11 Days for 3rd Stage Kidney failure and put on Dialysis.
These increasing health care costs have an outsized impact also on one important group here in California: many of our military families. As the founder of Our Nation’s Heroes Foundation, a nonprofit that educates communities about how to support members of the U.S. military, I see how service members and their families can struggle to keep up with health care expenses. Many of these families rely on a fixed income, especially during deployment. And in a time of persistent inflation and economic uncertainty, increasing medical costs can be out of reach for these heroes and their families.
Hospital consolidation is to blame for a large portion of rising health care costs. After large hospital systems acquire independent, private physician practices, they then turn around and charge more for the delivery of medical services. Patients end up paying higher fees for the same care they previously received at a lower cost.Higher fees can lead to hundreds – or even thousands – of dollars in additional costs. And patients often don’t know they will be overcharged for their health care until they receive their insurance bill. These unfair and unexpected out-of-pocket costs can be detrimental for families on a fixed income who do not have thousands of dollars to spare.
This situation is untenable and unacceptable. That’s why our congressional delegation must support recently proposed legislation in Washington, D.C., that would work to fix unfair billing practices and improve access to health care for all Americans, especially our service members.
The Facilitating Accountability in Reimbursements Act (FAIR), introduced a few months ago in the House, would require increased price transparency in medical billing. Similar legislation – the Site-based Invoicing and Transparency Enhancement Act (SITE) – has been introduced in the Senate.These bills would prevent hospitals from charging inflated fees for services provided at their outpatient departments, including newly acquired independent, private physician practices. More transparent pricing, in turn, reduces unexpected out-of-pocket expenses and helps families save money. This crucial reform would allow patients to feel confident about receiving the care they need at a price they can afford.
The FAIR and SITE Acts would also have a significant national impact by relieving the financial burden currently carried by federal taxpayers. It’s estimated that Americans overpay close to $40 billion in costs due to these unfair billing practices. Adopting site-neutral legislation could reduce Medicare spending by $153 billion and Medicare beneficiaries could see a reduction in premiums and cost-sharing by $94 billion. And total national health expenditures could be reduced by as much as $672 billion. That money could be a lifeline for many.
Reducing medical costs would benefit our service members who serve our country and their families. It is imperative that the California congressional delegation – support the FAIR Act and encourage their Senate colleagues to support the SITE Act. Passing these bills would offer much-needed reform to a system that isn’t working. It’s time to fix it.
OC Political 