Photo: Flickr / Christiana Care
Hospitals are increasingly milling their patients’ confidential medical records to target their promotional mailings for services, reported Phil Galewitz of USA Today.It’s not illegal, but the practice doesn’t sit well with consumer advocacy groups who point out that many health care providers are choosing to ping patients with better insurance coverage.
That creates a sort of indirect discrimination, as hospitals make it harder for consumers with less insurance to learn about services they may very well need.
To target the ads, hospitals determine the likelihood that patients would need certain services based on age, income and insurance status. Hospitals have said they target patients with private insurance because the companies tend to pay higher rates than government-backed plans like Medicare and Medicaid.
The mailings also advertise a variety of tests, such as screenings for cancers and cholesterol, which are generally more expensive.
As record numbers of Americans go without health insurance, hospitals targeting consumers who are more capable of shelling out money for services has been an inevitable outcome, along with soaring health insurance premiums. (Read why the rich are building their own hospitals.)
To make matters worse, employers are also reducing health insurance benefits in the workplace.
As we recently reported, one in five Americans are experiencing difficulty paying off their medical debt, while 25 per cent have considered filing for bankruptcy because of rising medical bills.
Though targeted mailings might place others without insurance at a disadvantage, hospital officials insist they target patients who pay more to make enough profit to serve everyone.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.