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

Protect Patients: Limit Surprise Out-of-Pocket Fees

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

More than one in four Oregon 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. Nearly half of adults in Oregon say they would struggle to pay a $1,500 medical bill. The harm 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. Black, Hispanic, low-income communities, and women are the hardest hit. Oregon must take action to protect patients from the heavy burden of surprise out-of-pocket healthcare fees.

What are Facility Fees?

Facility fees are extra charges for receiving services at outpatient facilities owned by large hospital systems — including doctor’s offices and clinics off the hospital’s main property. These fees are not a result of providing higher quality care, and they don’t go towards paying our doctors and nurses for the care people receive. Rather, they are arbitrary administrative markups. These fees can turn simple, inexpensive procedures into major — and unexpected — financial setbacks.

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, often as a result of unexpected fees that have to be paid out of pocket.
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 covers a small portion or none of the fees at all, regularly surprising patients with hundreds or thousands of dollars of out-of-pocket costs and pricing people out of accessing the care they need.

Legislators Must Protect Oregonians from Facility Fees

Oregonians should be able to get care from hospital-owned facilities without shouldering unfair, additional fees that are a needless financial burden. Oregonians overwhelmingly support increased transparency in medical billing and state action to reduce hospital prices. Legislators should act to protect Oregonians from these unfair fees. In doing so, Oregon would join the 18 states that have protected their patients from the burden of these surprise, out-of-pocket fees.