Senator Umu Verbatim introduces bill to eliminate facility fees in Minnesota healthcare

February 18, 2025 | 2025 Legislature MN, Minnesota


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Senator Umu Verbatim introduces bill to eliminate facility fees in Minnesota healthcare
Minnesota lawmakers are taking significant steps to address the controversial issue of facility fees in healthcare, which have been criticized for driving up costs without improving patient care. During a recent meeting of the Committee on Health and Human Services, Senator Umu Verbatim introduced Senate File 15, a bill aimed at eliminating these fees for nonemergency services provided at clinics, including telehealth appointments.

Facility fees, which are often charged when patients visit clinics affiliated with hospitals, have been described as predatory and unpredictable. They can add hundreds or even thousands of dollars to medical bills, particularly for routine visits and preventative care. Senator Verbatim highlighted that these fees do not enhance the quality of care but instead bolster the profits of healthcare systems. The bill seeks to prohibit these charges for outpatient evaluation and management services, as well as diagnostic imaging services that can be safely performed outside of hospital settings.

The meeting featured testimony from Melissa Finnegan, a concerned parent who shared her personal experience with facility fees. After a routine follow-up appointment for her daughter, she was shocked to receive a bill that included a $423 facility fee despite the fact that her child had never set foot in a hospital. Finnegan's story underscores the lack of transparency surrounding these fees, as patients often only discover them after receiving their bills.

The proposed legislation also includes provisions for health systems to report facility fees to the Minnesota Department of Health, which would have the authority to enforce compliance and impose penalties for violations. This move aligns Minnesota with other states like Connecticut and Colorado, which have already enacted similar bans on facility fees.

Senator Verbatim emphasized the need for stronger patient protections, particularly for those in rural areas who have limited healthcare options. The bill aims to ensure that patients are not burdened with unexpected costs and that they receive clear notifications about any potential fees before their appointments.

As the committee continues to discuss the implications of this legislation, the focus remains on creating a more equitable healthcare system that prioritizes patient care over profit. The next steps will involve further deliberations and potential amendments to the bill before it moves forward in the legislative process.

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