AHIP accuses out-of-network providers of price gouging in the cost of COVID-19 tests

Lavern Vogel

Picture: Morsa Images/Getty Photos

AHIP claims that federal mandates for insurers to fork out for COVID-19 tests have resulted in cost gouging on the part of some out-of-community providers.

Out-of-network vendors demand noticeably higher prices, AHIP said in a February 2 statement submitted to the Residence Committee Vitality and Commerce Subcommittee on Shopper Defense and Commerce. A lot more than fifty percent charge more than $185, when the regular is $130, AHIP said. 

AHIP would like Congress to choose action by eradicating the federal requirement that insurers pay back the “dollars price” for COVID-19 tests sent out-of-community, in accordance to the assertion for the listening to on “Pandemic Profiteers: Laws to Stop Corporate Selling price Gouging.” 

Implementing legislative action would secure people from balance billing charges by allowing insurers to foundation payment for COVID-19 tests administered out-of-network on their median in-community charge, AHIP stated.

The insurance company affiliation also wishes Congress to instruct the Centers for Condition Manage and Avoidance to launch steerage permitting the use of the ICD-10 COVID-19 screening examination code. This would allow for insurers to carry out screening procedures and extra exact coding, AHIP mentioned.

In addition, AHIP wants the Facilities for Medicare and Medicaid Companies to make HCPCS billing codes to create a method for monitoring around-the-counter exams to be able to check the provide chain and reconcile in opposition to amount restrictions to preserve observe of fraud and abuse.

The corporation said it supports ongoing federal funding for broad-dependent accessibility to more than-the-counter COVID-19 tests that provide an substitute to increased-priced, provider or lab administered tests. 


Price tag gouging in COVID-19 screening continues as a important dilemma, AHIP reported.
“In 2021, AHIP done a survey of wellness insurance policies suppliers in the industrial market place to acquire facts on charges billed by out-of-network companies for COVID-19 assessments,” the assertion reported. “The success located that out-of-network vendors billed substantially greater selling prices (far more than $185 when the average is $130) for far more than fifty percent (54%) of COVID-19 checks. The details present that the challenge has gotten even worse – not better – given that the beginning of the pandemic.”
THE Much larger TREND 

In March 2020, when Congress passed the Coronavirus Support, Aid and Economic Stability or CARES Act, it demanded insurers to pay the shown money value the provider posted on a community web site for exams to diagnose COVID-19, barring any agreement in spot.

“In carrying out so, Congress properly eliminated the capacity of well being insurance coverage vendors to negotiate a lot more reasonably priced COVID-19 screening costs,” the statement claimed. “What’s more, the statute precludes medical management equipment that overall health insurance policies suppliers could use to encourage individuals to use in-community vendors and labs.”

Insurers are also necessary to go over the charge of at-dwelling COVID-19 tests.

Twitter: @SusanJMorse
Email the writer: [email protected]

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