Patients No Longer Charged for Medical Errors in Some States: Shifting Medicare Policy Forces Reevaluation of Hospital Bills

Mike Ferrara
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Posted by Mike FerraraSeptember 02, 2008 3:31 PM

Charging patients for the extra care they receive due to egregious medical errors has come under fire in recent months, as more and more hospitals implement voluntary policies of not billing for the worst kinds of errors, including operating on the wrong body part, and leaving foreign objects inside surgery patients.

Such errors have been dubbed “never events” by the health care community, because they should never happen at all.

Hospitals have adopted these billing changes partly in response to shifting Medicare policy. Last year, Medicare announced that beginning October 1, 2008, it will no longer reimburse hospitals for a list of “never events” that has been steadily lengthening since its announcement. This list now includes giving patients the wrong blood type, surgical site infections, bed sores, and in-hospital falls.

Many of the nation's largest insurance providers, including Aetna, Cigna, and Blue Cross Blue Shield, have also refused to pay for serious, preventable medical errors in recent months. The shift in payment structures has forced many individual states to reevaluate how the costs of serious medical errors should be dealt with. Last September, Minnesota became the first state to announce that its hospitals would no longer charge patients or providers for preventable medical errors. Since then, at least five states have agreed to waive fees for the list of 28 “never events” compiled by the National Quality Forum, a patient safety and advocacy agency. Other states have opted to compile their own lists of preventable errors for which they will waive patient fees.

Still, many states are choosing to continue charging patients for serious medical errors. The Federal Agency for Healthcare Research and Quality estimates that preventable medical errors are still costing American employers nearly $1.5 billion a year. Click here to see which states still charge.

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