Michigan lawmakers push for reform of hospital facility fees

Michigan lawmakers are pursuing bipartisan legislation to reform hospital facility fees, which often add significant costs to patient bills without clear disclosure. These fees, intended to cover operational costs like security and laundry, are increasingly being applied to outpatient services, telemedicine, and physician offices, even when patients do not visit a hospital facility.

The push for reform follows reports of rising costs, such as a case where a routine blood test incurred nearly $75 in extra fees. Estimates suggest facility fees added an average of $100 to primary care bills in 2022. While exact statewide totals for Michigan are unknown, federal reports indicate these fees account for tens of billions of dollars within Medicaid alone.

Proposed legislation in Lansing aims to prohibit these fees for care provided at non-hospital sites, telemedicine appointments, and certain in-hospital outpatient services. Michigan joins other states, such as Ohio and Indiana, that have moved to limit these charges or increase transparency through site-neutrality requirements.