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Representative Schmidt urges shifting collection of patient cost sharing to insurers
Summary
In sponsor testimony for House Bill 390, Representative Jean Schmidt said the bill would move responsibility for collecting co‑pays, deductibles and coinsurance from physicians to health insurers to reduce administrative burden, avoid care‑denying billing conversations and improve access to care; lawmakers questioned insurers' incentive to collect amounts owed to providers.
Representative Jean Schmidt told the Ohio House Insurance Committee that House Bill 390 would shift responsibility for collecting patient cost sharing — co‑pays, deductibles and coinsurance — from physicians and medical practices to health insurers.
"This legislation would shift the responsibility of collecting patient cost sharing amounts, co‑pays, deductibles, and coinsurance from the physician to the health insurers," Schmidt said in sponsor testimony. She argued that forcing medical staff to chase payments creates "tension, damages trust" and places providers in an "unethical position of having to choose between continuing care or enforcing payment." Schmidt said insurers already have tools — such as suspension of coverage — and administrative systems that would make collections more efficient and reduce duplicative billing.
Ranking Member Hall questioned the incentive for insurers to collect co‑pays, noting that such amounts are ordinarily owed to providers, not insurers. "What incentive is there in your view for insurance companies to want to collect co‑pays?" Hall asked. Schmidt responded that insurers already send explanation‑of‑benefit notices and "already know what the share is going to be," and asked why insurers could not take responsibility for collecting those amounts.
Other committee members raised related concerns. Representative Lorenz asked whether the bill would address separate billing by outside labs; Schmidt said the bill does not directly address that scenario but could be examined later. The committee did not take a vote on the bill during the hearing; Schmidt concluded by asking for the committee's support and offering to answer questions.
