NEWS RELEASE: Senators Moody, Sullivan Lead Effort to Uncover Shady Health Care Billing Practices That Lead to High Levels of Medical Debt

WASHINGTON, D.C.-Senator Ashley Moody and Senator Dan Sullivan (R-AK) are urging the U.S. Department of Health and Human Services to uncover improper health care billing practices that lead to high levels of medical debt. Instances of high medical debt continue to be a top concern for Americans, and there are reports that indicate hospital bills charged to uninsured patients that end up as medical debt are often well in excess of the actual cost of providing the service.

"We are writing to request you investigate and provide recommendations to Congress for addressing inappropriate health care billing practices that lead to high levels of medical debt," said the Senators. "Despite efforts by Congress and President Trump to insulate patients from 'surprise' medical bills in the No Surprises Act, after four years of runaway inflation and increasing health costs under the Biden administration, instances of high medical debt continue to be a top concern for our constituents."

BACKGROUND:

• While most medical debt sent to collections is under $300, approximately 14 million Americans owe over $1,000. Three million have incurred medical debt that exceeds $10,000, representing almost 80 percent of the aggregate medical debt owed in the United States.
• High hospital bills have been a key factor for those suffering from high levels of medical debt. Almost 70 percent of Americans with medical debt under $1,000 reported having no hospital bills at all, but over 70 percent of those with debt over $1,000 reporting owing debt to hospitals, according to a 2022 survey.
• Just last month, an investigation found "facilities on average charge the uninsured almost five times what Medicare pays for the same procedure."
• Senators Moody and Sullivan are directing HHS to investigate root causes of instances of inordinately high medical debt and provide recommendations to Congress.
• Read the letter here.

# # #