The biggest threat to consumers this year: SB 1122/HB 855

- Bad bill will punish patients, employers and taxpayers with exorbitant health costs and out-of-pocket fees -

April 29, 2009

The Florida Legislature is poised to pass the biggest threat to consumers this year: a bill that serves no purpose but to drive up health care costs for patients, employers and taxpayers.

SB1122/HB 855 would destroy PPO networks and raise health care costs

SB 1122/HB 855 is a prescription for a disaster for Florida patients and taxpayers. Patients who go to a doctor for medical care and are hit by unexpected bills could see their credit damaged, their families dogged by collections agencies, and they could even become victims of lawsuits.

A secret pay raise for doctors at patients' expense

SB 1122/HB 855 will raise costs system-wide by undermining the ability of insurers to negotiate reasonable fees with physicians, causing higher insurance rates and higher out-of-pocket medical bills for Florida patients.

Punishment for patients, state workers and taxpayers

SB 1122/HB 855 could punish public employees with an increase of about $118 million in their share of health care costs.

The bill could also increase the 2009 cost of the State of Florida Employee Group health insurance plan by $22 million - a burden state taxpayers would pay. That's according to an actuarial study of the bill provided by Blue Cross/Blue Shield of Florida and reviewed by Oliver Wyman, an actuarial consultant used by the State of Florida.

Not what the doctor ordered

SB 1122/HB 855 will raise insurance premiums and out-of-pocket health costs for retirees not yet eligible for Medicare - for the sole purpose of benefiting doctors at the expense of patients. In these tough times when everyone is struggling to make ends meet, raising health care costs beyond their current very high level is exactly the wrong prescription. It is not what the doctor should order.

OPPOSE SB 1122/HB 855:
THE WORST THREAT TO CONSUMERS THIS YEAR

Policy background

Today, health insurers contract with credentialed doctors to create a "network" of doctors who have agreed to reasonable rates for providing medical care. Members of PPO insurance plans are encouraged to visit these doctors to take advantage of lower rates. This works for patients because they don't have to pay bills (except for co-payments and deductibles) to their in-network doctors, who are instead paid by the insurance company.

But if SB 1122/HB 855 becomes law, doctors who are not members of PPO networks - and have not agreed to reasonable rates for medical care - will be entitled to receive direct payment from a patient's insurance company in the same way as a doctor who is a network member. Moreover, the law will allow them to bill the patient for the difference between their higher rate and the lower PPO rate. This change would put patients at the mercy of high medical bills, collections agencies and even lawsuits.

Sponsored by the Consumer Federation of the Southeast.