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Jan 08, 2009 -- Hospitals use wallet biopsies to deny treatment

Hospitals across America are doing covert "wallet biopsies" to deny life-saving treatment for patients, according to BusinessWeek. This is even happening to those patients who have insurance!

In a wallet biopsy, the hospital takes a separately purchased health credit report and then factors in your income, insurance and level of debt. The goal is to gain a profitability index score on you so they can determine how to handle your individual case.

If your index score is too low -- meaning that your insurer is unlikely to pay and you're unlikely to meet your out-of-pocket expenses -- they won't treat you, according to BusinessWeek.

But there is a way to fight back. Many hospitals have non-profit status, which means that they receive massive subsidies from taxpayers in return for the promise to provide charitable care. Have a family member go directly to the hospital's administrator and threaten to challenge their tax-exempt status if they're not providing care to you.

Meanwhile, new figures show that the instance of cancer has had its first recorded drop ever. Let's hope this is a turning point and not just a statistical aberration.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Health Care Costs
    Health care facilities need to make their fees available prior to admission so that the consumer can compare. Will continue to go to Singapore to obtain quality care for less than half the cost.
  • The middleman profits from your loss
    I used to sell Med Supps, and made $2,000-3,000 off 2 hours work. I then realized this is why health care is so pricey. Your health is business and treating you is dependent on the insurance company making a profit. With so many rules to learn, and plans, and lobbyists, and big businessmen getting rich, it's no wonder getting health care is such a pain.
  • It's scary out there!
    An uninsured friend of mine needed emergency surgery recommended by his doctor. My friend went to the ER (his doc had informed the ER staff re: his emergency situation) but the ER refused treatment. I politely asked the doc if they were "refusing treatment." Their way around the issue was to say "no treatment is necessary." It was a life/death situation and the ER was unwilling to help due to his lack of health insurance.
  • What's wrong with "free" health care?
    The poor already have free healthcare, if you don't care about your credit then health care is free. We've also got a large portion of the middle class that can't afford health care because of the rapidly rising costs. What happens when they go in for an emergency? They can't afford to pay the bill, go bankrupt and then they've got free health care too.

    So, who ends up paying for it? The people with insurance pay for it with higher premiums and tax payers pay for it through subsidies.

    What would be wrong with calling a duck a duck? Fund all health care through taxes instead of splitting it with tax and insurance. That's the only way to get everyone to pay at least a portion of their fair share.

    That huge portion of the middle class population now pays for health care through their taxes. The working poor pay too. The only ones still getting a "free ride" are the ones that aren't working at all. And if you're not working, do you really think "free" health care is a huge luxury in your life?

    I think the change in take home pay with the huge influx in money going into the system by "forcing" everyone to pay for health care in tax dollars would be a pleasant surprise to most people.

    If you've got health care coverage, you're already paying for "the poor people's" health care. What's wrong with forcing them to chip in?
  • Hospital Wallet Biopsies
    100 Million people in the US are uninsured or under-insured. The hospitals must treat immigrants and the indigent families who do not pay taxes or contribute in any way to the `system`.

    As a result, the insured patients are forced to pay escalated charges such as $40 for a Tylenol pill. As part of the dominoes effect, those insured people can't afford the outrageous cost of medical expenses kicked out by their managed care insurance coverage and passed on to the patient. The proposal for Universal Healthcare cannot succeed in the US because our population is many, many times larger than Canada, the U.K., or any other country providing government healthcare. The gov. cost vs. a current population of 300 Million (+ growing rapidly) utilizing the proposed healthcare services simply will not be sustainable.

    Clark Howard has not reported (to my knowledge) on the quality and affordable GLOBAL HEALTHCARE options now easily accessible to Americans. There is a great digital magazine online that gives rate comparisons US & International Hospitals - a savings of 85%! The magazine, GPS - Global Patient Services also mentions the top quality hospitals in the world and their rates for specific procedures. Some Blue Cross Blue Shield franchises include these hospitals in their PPO network!!!
    Read the article online at www.GPS-Magazine.com
  • Response to DC
    Like it or not it's the same Govt. DC and they are going to blow your money if you get something for it or not. I say we should get something for it. Not sure how getting something for your money relates to being a socialist but hey.... your heroin socialized medicine analogy pretty much says it all...maybe if you ever get in a health care bind you can call Rush to help out hear he's got access to some good meds..
  • Rebly to RV
    "I don't quite understand how the govt. is good enough to fight wars, etc. but not good enough to save us from a health care system that is quickly going the way of the lovely banking system and the big 3."

    I must have missed the news about the health care industry and all the bailout money they are asking for. The health care industry is not the banking system, nor is it the big 3.

    I doubt that you have ever read The Constitution but it is the government's job to fight wars not run heath care systems.

    Also I have never USED heroin but I know it’s bad for me. Socialized medicine is BAD.
  • Reply to the Socalist RV
    "I don't quite understand how the govt. is good enough to fight wars, etc. but not good enough to save us from a health care system that is quickly going the way of the lovely banking system and the big 3."

    I must have missed the news about the health care industry and all the bailout money they are asking for. The health care industry is not the banking system, nor is it the big 3.

    I doubt that you have ever read The Constitution but it is the government's job to fight wars not run heath care systems.

    Also I have never USED heroin but I know it’s bad for me. Socialized medicine is BAD.
  • People don't have to fight to get covered and get their meds in this country? Old people aren't eating dog food to make ends meet or are those just fairy tales the media makes up. "Insured" Americans don't have to constantly "go round" with the insurance companies, medical facilities, doctors? What is one of the biggest if not biggest reasons for personal bankruptcies in the U.S. today? U.S. medicine change is coming alright in the form of WalMart physicals...there's a comforting thought for us all.
  • Socialized Medicine is not that great.
    Trust me for those of you who are pining for the medical care of The UK and Canada. I am an American who lives in London. I have fought to get basic medicine prescribed to me and still been denied my long term Asthma meds as too expensive. Here cancer patients are having to take their local trusts to court to try to get life saving meds because they are classed as too expensive. The UK has the lowest cancer survival rate in the western world. American medicine does need a change. But do not look to the UK as your guide.
  • I would like to know how many of these people that claim the Canadian and English health care systems are so bad have actually used them or are they just opening their mouths and letting the useless drivel spewed 24/7 from the talk show hosts and politicians (you know who they are) that are connected to the $$ "biz" of health care fall out of their mouths. I understand that it is ingrained in small American children from birth not to trust the govt. but who do these people turn to when things go south as they are now or when there is a war. I don't quite understand how the govt. is good enough to fight wars, etc. but not good enough to save us from a health care system that is quickly going the way of the lovely banking system and the big 3. Enough of this BS talk radio show mentality already look where it got us in the last eight years, Let's all look after each other for a change. Lighten the load for stuff that really counts what's wrong with that? And please if you haven't actually USED another countries health care system you really don't know do you!
  • government medicine
    I believe that the FDA, AMA and drug companies and docs are in cahoots to keep the cost of health care very high. each cancer patient is worth at least $500,000 and they aren't about to give that up. There are cures for cancer besides chemo and radiation. germany does heat, a new one is heating a tiny piece of metal in a tumor, and there are supplements that cause the cancer to kill itself (atopsis), so lets yell loud and clear to all who will listen to stop the spread of disease that is so profitable. Flouride causes cancer and slow metablosim ( knew that in the 1800s) so why is it in our water? to provide a way for chemcial companies to dispose of flouride (by product) instead of paying to get rid of it. and we love flouride. does no one think any more? or do any research on the intenet? read Dr Blaylock (nutrition MD, neuro surgeon ) who has a nutritional practice and learn.
  • medical savings plan sux
    your expecting all of the restaurant servers between the age 18+ to start saving 10% for meducal insurance, you ARe kidding - gas, clothing, car payments, car insurance, rent, utilities, food, coupled with the fact that the creepy public has backed off on tips now in >10% making minimum wage sux, no alternative jobs to get out from under it, no help from food service employers on health insurance, who cares who runs the program just get us some coverage we can afford!
  • Wallet Biopsies
    Yeah, the government would be super at healthcare, look at England...up to 4 hr wait for an ambulance. No, leave it private. Require proof of US citizenship. Look at SO Cal ER's, enought PC already! Remember government said that madcow would not jump to humans?
  • I wish people would stop commenting on what they know nothing about. In view of this article and what we know of "BIG Business" in this country especially as of late how could we POSSIBLY do any worse under a "centralized" system that everyone pays into. It would allow you to quit a dead end job and still be covered, prevent you from losing everything you worked your whole life for just because you got sick or in an accident... and stop the nonsense of so called "wallet biopsy" procedures. Would it be perfect? No but this system is totally, absolutely busted and the way we are now "shelling" out billions for everything else and having it dissapear into smoke at LEAST we would get something for our money! As far as if we think the system is bad now wait until the govt. gets a hold of it...well we need to INSIST the govt. starts doing their jobs and doing them well or get rid of them! That's OUR job!.
  • EMTALA
    It is true that people use the Emergency Department for things other than emergencies, but I think alot of patients feel they have no other choice. Even if you call your PCP for an appointment, they can't fit you in until 3 weeks from Tuesday! We have a lack of preventative and primary care, as well as structured health education. When a person is trying to determine wether or not they should go to an ER, they look up their symptoms on the internet and then "diagnose" themselves with a life threatening condition. This is most often not the case. EMTALA prevents ER's from turning anyone away without a medical screening exam by a physician. Otherwise, they are slapped with HUGE fines. Even if someone was just discharged 10 minutes ago and they turn around and come back to the ER to be seen again, a doctor has to see them. This results in homeless, indigent, and mentally ill patients coming back again and again and abusing the system. Most of those patients have healthcare paid for by you and me in the form of tax dollars and higher insurance premiums. I think development of other services to treat chronic conditions will ease the clogged up ER's, but EMTALA reform is also needed. Hospitals cannot survive without money. We have some of the best healthcare in the world, but it costs money. Nurses, Doctors, Rad techs, housekeepers, administrators, med techs all need payment for the job they do. CT scanners, MRI, and Ultrasound cost money. Healthcare is not free, even in "socialized" medicine systems. It takes money to keep the doors open.
  • Health Care
    If you think health care is messed up now, just wait until the government run it.
  • Business Week Report
    Clark,
    I have listened to you for years and you are usually on target, however, you missed a major point of the article. This is done for FREE OR DISCOUNTED CARE only. If you have insurance, you will be seen. If you are truly destitute, then you will seen. Many people think or feel they should have free care because it is their right. Please do not confuse the issue any more than it already is.
  • Medical care ala George Orwell
    The system is broken. The cost shifting that takes place daily in hospitals would be illegal if practiced in any other business. Imagine an auto shop charging you twice the rate of another customer because you have a bigger bank account! No way - that garage owner would be charged with fraud and sent to jail. Hospitals get away with the same fraud all the time and no one complains because it is hidden in piles of coded and intentionally confusing records.

    The latest "single payer" solution proposed by some members in Congress is really no solution at all. It will create a Big Brother system to ration health care. The old, indigent, and disabled will be set off in a corner to die because they will never be able to receive timely or sufficient care. Hospital bureaucrats will look at a computer screen with a number that estimates what your life is worth. If it is less than the cost of the care needed - you're a goner!

    The only real answer is to force citizens to save for their care staring at a young age. If workers had to set aside 10% of their wages in a _personal_ medical account, I think we could eventually break free from this silly system of robbing Peter to pay Paul's medical bills.
  • comments continued part 3
    For those who have commented that people use the ER for non-emergencies, part of the reason is that there is no incentive not to for patients on medicaid/public assitance. For these patients, there is no co-pay or deductible whether they go to the ER or their doctor. Why wait for an appointment when the ER is open all of the time and often you get test results back much faster. Patients with insurance often have deductibles that discourage them from going to the ER, and many uninsured know that it is more expensive to receive care in the ER, but with medicaid, the cost of the care does not impact the patient in the least. Since medicaid pays only a very small portion of the costs (for example, a visit that requires 30-45 minutes of a physician time will, in my state, pay the physician only about $20, and the cost of just the malpractice for this visit is higher than this, not to mention the costs of the billing staff and the cost of dictating the medical record). The only way to continue to make a living is to charge the patient with insurance a much larger amount to make up the difference.
    All of this is a result of the funding mechanisms that the government has put in place and forced physicians into. Physicians would love to change this system, but the government seems to just get more and more involved. If you have less government involved (less regulation, liability, and distortion of actual costs versus charges versus the reimbursement amount), the uninsured and insured patients will benefit the most because they will be paying less for the care of other people and rather, will only be paying for their own care.
  • comments coninued, part 2
    Because the government has required emergency departments to do a medical screening exam on everyone who arrives, there are a large number of people who do not pay their bills at all or the hospital is paid miniscule amounts be medicaid/public assistance, amounts far less than what the cost of providing the care. To make up for all of these people who do not pay for the services they consume, the hospital needs to have exorbitant mark-ups in the cost for those patients with insurance, and the ones who get hurt the most are uninsured patients who actually try to pay their bills, since they pay not only for themselves, but also a large amount for all of the people who do not pay. Furthermore, hospitals and physicians pay a large amount in liability insurance that must be passed on, and the government has created a tremendous number of regulations, and complying with all of these regulations creates tremendous costs as well.
    As a result, when you go the ER to get a few stiches, you bill is about $1500, of which probably only 200 are actually costs related to treating you, and the rest is to help pay for the patient who was in the room next to you complaining of chest pain who registered with a false name to avoid paying the bill, paying insurance premiums, and to help pay the slaries of all of the administrative people the hospital has had to hire to comply with federal regulations, and all of the people required to the billing and other administrative tasks.
  • I'm amazed at the lack of understanding of healthcare economics shown in the comments posted here. As an emergency physician, let me give you my perspective. First of all, emergency departments are required by a federal regulation called EMTALA to provide a medical screening exam to anyone who comes to the emergency department. The consequences for violating this are stiff. Hospitals do not have access to the insurance information of a patient before they arrive to the hospital, and therefore the comment from mljhouse makes no sense. Emergency departments may have to go on "diversion", meaning that they will not accept any ambulances at all because either the emergency department volume or acuity has reached a dangerous level or because there are no inpatient beds for patients. Being on "diversion" means that no patients, insured or not, are accepted by ambulances and the patients need to be taken somewhere else. This is a result of the inadequate funding of emergency departments and their staffing because of the immense costs posed by EMTALA.
  • Emergency Rooms Required to Treat
    Nessy: Legally the ER's are required to treat you if you are there for a real emergency, but hospitals often break the law or find ways around it. In 2 states I have lived in, CA and CT, I have heard frequent news stories about ambulances going from hospital to hospital trying to get a person with no insurance into an ER. I do agree with you that ER visits for trivial conditions are a problem.
  • Trust No One
    From above:
    "Meanwhile, new figures show that the instance of cancer has had its first recorded drop ever. Let's hope this is a turning point and not just a statistical aberration.
    --------------------------------------------------------------------------------
    Anytime the word "cancer" is used as an all inclusive word, I have lots of doubts - we don't consider all cancers to be equal in any sense of the word.

    Think of the bill of goods that we have all been sold that lead up to the current economic condition of the U.S.
    Do you really think that the (all inclusive) medical community is above tweeking data for financial advantage - for profit and non-profit?

    Think of all the fadish treatments, test, expert treatment facilities that have come and gone. The health/medical conglomerant can scare you into their profit or non-profit pockets.

    Talk about thrift, I use the emergency philosophy for my medical care judgement - If there is an emergency, I will seek medical attention but then again, they will only be allowed to fix what can be (provenly) fixed otherwise I've made my decision for care, test, treatments, medicines and the like.

    I've got insurance with Rx coverage - can't remember the last time I used it. None of us are gonna live forever and my quality of life has a value above all else.
  • What Clark Doesn't Tell You
    Is hospitals aren't required to treat every little thing that someone comes into be treated for. Unisured and low-income are using the ER like a family doctor visit, not it's intended purpose at all. Hey Clark, why not point out that unless you have an emergency, you shouldn't be in the ER, and if you do, you will be treated.
  • who are these hospitals?
    Can you tell us which hospitals are doing this. If you name names, that might shame them. We'll also know to avoid them.
  • Taxpayer Biopsy
    I work at one of those not for profits. We get people that have smoked for 40 years, come in with a heart attack and no insurance, People that are overweight and have diabetes but don't exercise or eat right and have no insurance. Or they shoot heroin everyday and wonder why they have an infection in their spine and have no insurance. Even though our system is underfunded and overwhelmed with patients (to the point of being dangerous), we see and treat them all. We cannot turn them away, insurance or not. And when it goes bad they sue us when they did it to themselves. So go ahead and threaten your not for profit and get in line for the government handout. The line will be very, very long!
  • It's getting to the point where only the very very wealthy will be able to afford medical care in this country. Talk about class warfare. Even having a well known and finacially stable insurance carrier is no longer a sure thing for getting your medical bills paid. The deductables are getting so high that your out of pocket expense will kill you if the hosipital doesn't.
  • How do we see these?
    Still no information on how to view our health "Credit Report."
  • There is absolutely no reason for the cost of healthcare to be what it is. You can work the best 30 years of your life to own a $150,000 dollar home and loose it in a week in the hospital.
  • Wallet Biopsy
    Hospitals are going out of business because the sources of funds to pay for indigent care are drying up. There is no free lunch with regard to healthcare. The healthcare of the future wil be pay-as-you-go rather than pay for everyone. The alternative is healthcare for no one as hospitals go out of business and doctors leave the field. Consumers must pay for the economic resources they use.
  • Toy Testing will be reduced on certain items.
    http://www.latimes.com/business/la-fi-lead7-2009jan07,0,6917858.story
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