The Kansas Insurance Department is warning consumers about two providers charging excessive costs for COVID-19 testing.
In a letter sent to providers this week, a Kansas Insurance Department lawyer stated that a provider in Lenexa, Kansas, listed a cash price of nearly $1,000 for a PCR COVID-19 test. According to the letter, this far exceeded the average price of less than $185 for a PCR COVID-19 test.
“If these astronomical costs charged by unscrupulous providers are borne by the health plans and insurers without recompense, consumers will ultimately pay more for their health care as health insurance costs will rise,” the letter from attorney Justin McFarland stated.
The letter also stated that the Kansas Insurance Department is aware of some providers conducting unnecessary tests in conjunction with a COVID-19 diagnostic test that results in thousands of dollars of unnecessary charges passed on to health plans and insurers.
A standing order from the Kansas Department of Health and Environment eliminates the need for a specific order from a physician to get a COVID-19 test, and eliminates the need to conduct many screening exams currently being provided by health care providers, according to the letter.
The letter stated that the Kansas Insurance Department is collecting data on excessive costs and will cooperate with law enforcement and administrative enforcement authorities to make sure that Kansas consumers are protected.
“Providers are advised that price gouging and insurance fraud will be fully investigated and prosecuted,” the letter stated.
According to the letter, individuals who are affected by COVID-19 testing costs may contact the Kansas Insurance Department’s Consumer Assistance Division at [email protected] and the Kansas Attorney General at https://ag.ks.gov/.
Federal law requires COVID-19 testing without cost sharing (including deductibles, copayments, and coinsurance) requirements or prior authorization or other medical management requirements.
The Kansas Insurance Department’s Consumer Assistance Hotline is at 785-296-7829 or 800-432-2484, and consumers who believe they were charged an improper charge may call the hotline.
The letter from the Kansas Insurance Department is online at https://insurance.ks.gov/documents/department/consumer-alerts/Insurance-Dept-Letter-to-COVID-19-testing-providers-12-20.pdf.
