Committee hears bill to credit cash medical payments toward deductibles; ERISA scope to be researched

Representative McGuire and supporters presented House Bill 1604, a proposal ‘‘modeled after the Cicero Institute’s Patients Right to Save initiative’’ that would let patients who pay a provider directly for a medically necessary service have that amount credited to the patient’s deductible and out-of-pocket maximum if the payment is not submitted to the insurer and is lower than the insurer’s negotiated rate.

The bill’s sponsor, Representative McGuire, told the committee the measure is a ‘‘market driven approach to the health care reform that enhances price transparency and incentivizes patients to seek cost effective care.’’ She cited nationwide trends and state-level figures, saying medical debt is a leading cause of bankruptcy and noting average premiums she gave as $8,435 for single coverage and $23,968 for family coverage.

Supporters from the governor’s office and patient-advocacy organizations testified in favor. Audrey Arbogast, chief of staff to the secretary of the Department of Health and Family Services,…