Fact Sheet: Protecting People from Hidden, Out-of-Pocket Medical Fees

SB539

Protect Patients: Limit Surprise Out-of-Pocket Fees

3 in 4

Oregon voters support legislative action to ban hidden fees charged by large health systems for medical care.

CHIEF SPONSORS: SEN. PATTERSON, REP. BOWMAN, MANNIX
CO-SPONSORS: SEN. GORSEK, REP. SOSA, WALTERS

More than one in four voters rank the rising cost of living as the top issue facing the state. Right now, Oregon families are forced to make hard choices between paying for medical care or other basic needs. The impact of this is clear – in 2024, more than 3 in 4 Oregonians had a hard time affording healthcare services because of cost, leading them to delay or go without care completely. Unsurprisingly, Black, Hispanic, low-income communities, and women are the hardest hit. Nearly half of adults in Oregon say they would struggle to pay a $1,500 medical bill. Oregon must take action to protect patients from the heavy burden of surprise out-of-pocket healthcare bills.

What are Facility Fees?

Facility fees are extra charges for receiving services at hospital-owned facilities – including doctor’s offices and clinics off the hospital’s main property. They turn simple, inexpensive procedures into major – and unexpected – financial setbacks. These fees are not a result of a change in the type or quality of care provided to a patient.

Why are They a Problem?

Facility fees create unnecessary barriers to people accessing essential care and put stress on patients just trying to make ends meet, compounding existing issues:

Hundreds of thousands of Oregonians across the state are currently struggling with medical debt, primarily due to unexpected and out of pocket fees.
83% of Oregonians say they are worried about being able to afford healthcare in the future.

Oregon currently has no requirements for providers to notify patients about these fees, or estimated fee amounts. Insurance often only pays a small portion, regularly surprising patients with hundreds or thousands of dollars of out-of-pocket costs, pricing people out of accessing the care they need.

The Solution

Oregonians overwhelmingly support increased transparency in medical billing and state action to reduce hospital prices. This bill would:

Limit facility fees for certain routine services and in outpatient clinics.
Require advance notice of all facility fees.
Allow the state to collect data on how, where, and to whom these out-of-pocket fees are being charged.

In doing so, Oregon would join the 18 states that have successfully passed legislation to protect patients from the burden of these surprise, out-of-pocket fees.