deductibles and co-payments are growing so big that insured patients also have trouble paying hospitals

Ralph Nader: America's Pay-or-Die Health Care SystemMay 6, 2008 | The Story of Lisa Kelly
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Advised by her physician to go to M.D. Anderson for urgent treatment of her leukemia, Mrs. Lisa Kelly was told she had to pay $105,000 up front before being admitted. The hospital declared her limited insurance unacceptable.

Sitting in the business office with seriously advanced cancer, she asked herself – “Are they going to send me home?” “Am I going to die?”

Time out from her torment for a moment. M.D. Anderson started this upfront payment demand in 2005 because of a spike in its bad debt load.

The Wall Street Journal explains – “The bad debt is driven by a larger number of Americans who are uninsured or who don’t have enough insurance to cover costs if catastrophe strikes. Even among those with adequate insurance, deductibles and co-payments are growing so big that insured patients also have trouble paying hospitals.”

It isn’t as if non-profit hospitals like M.D. Anderson are hurting. Look at this finding in an Ohio State University study: net income per bed at non-profit hospitals tripled to $146,273 in 2005 from $50,669 in 2000. And you also may have noticed the huge pay packages awarded hospital executives.

M.D. Anderson, exempt from taxation, recipient of funds from large government programs and research grants has cash, investments and endowment totaling $1.9 billion, with net income of $310 million last year, the Journal reports.

Back to the 52 year old, Lisa Kelly. She and her husband returned with a check for $45,000. After a blood test and biopsy, the hospital oncologist urged admittance quickly. Then the hospital demanded an additional $60,000-$45,000 just for the lab tests and $15,000 for part of the cost of the treatment.

To shorten the story, she received chemotherapy for over a year. Often her appointment was “blocked” until she made another payment.

In a particularly grotesque incident, she was hooked up to a chemotherapy pump, but the nurses were not allowed to change the chemo bag until Mr. Kelly made another payment. ...