Governor Phil Murphy recently signed into law a new transparency law that prohibits Garden State businesses from profiting from credit card surcharges on their bills. We all hate paying the few percent surcharges that some restaurants and retailers put on your bill when you pay with Visa, Mastercard, or American Express, but this law will help us get around them. Helpful. Consumers have a right to know what they are being charged, especially in this inflationary age.
But lawmakers are missing a huge opportunity to protect consumers from unknown hidden costs. The focus should expand from annoying credit card surcharges to potentially financially devastating medical overcharges.
High, unexplained medical bills can lead to years of medical debt, bankruptcy, and hospital lawsuits, leading to wage garnishments and asset seizures. A New Jersey hospital has even sued patients for nonpayment during the coronavirus pandemic.in One of the classic stories Gina Gonzalez of Woodbridge was forced to sell her car to pay a $13,500 settlement resulting from a lawsuit filed by Trinitas Hospital.
As the former director of New Jersey’s state health care plan, I have seen firsthand the financial devastation caused by hidden health care costs. In some cases, these additional charges took the form of exorbitant “facility fees” on top of medical care and even telemedicine. But in many cases they were just run-of-the-mill price gouging.
New Jersey law covers credit fees.How much credit card fees can businesses charge? New Jersey law states:
For example, Little Ferry’s Mark Gottlieb said,received a $250,000 hospital bill He paid $89,000 out of pocket for surgery after a car accident.Richard Kodak of Morris County Wins $9,000 hospital bills, He borrowed $7,323 out of his pocket for ambulance bills for 20 of those minutes. With this well-documented health insurance overcharge, there is an urgent need for price transparency to protect patients.
Due to the uncertain situation, 11% of New Jersey residents —and 17% of New Jerseyans of color are paying off their medical debt. Early in my career, as a bankruptcy attorney in New Jersey, I have seen countless heartbreaking stories of individuals and families spiraling into medical debt, often due to circumstances beyond their control. I was. Many went bankrupt after receiving routine treatments at exorbitant hidden prices. I remember watching them walk out of court without hope.
In today’s predatory healthcare system, patients are asked to sign an unlimited guarantee as a condition of treatment to pay all subsequent charges. No wonder the prices are so high. In which areas is it permissible for the most vulnerable to take on debts that can lead to the loss of everything?
Legislatures can address this anti-consumer medical movement by codifying and enforcing it. federal government hospital and Health Insurance Pricing Transparency Rule at the state level. These rules require hospitals and insurance companies to charge real prices, including secretly negotiated fees, online so that consumers can buy medical supplies at affordable prices and have peace of mind that they will not be financially ruined. is required to be posted on
Federal regulations are plagued with problems such as: non-compliance and Lack of standards. Many hospitals circumvent the rule by using cost estimators that allow hidden or overage charges to be reflected on the final bill. However, strong state laws can provide meaningful price transparency for residents.
Just like state consumer affairs offices Plans to inspect New Jersey businesses for compliance This credit card surcharge law allows state agencies to force healthcare companies to provide upfront pricing that matches the patient’s final bill.
“All residents and visitors doing business in New Jersey are entitled to maximum transparency regarding their transactions,” Murphy said when signing the credit card bill into law. Governors and legislators should follow the courage of their convictions and extend this principle to the health sector, where they can have greater impact in protecting the general public.
Christin Deacon is the former Director of Health Care Benefits Operations and Policy and Planning in New Jersey.
