Insurance is designed for the sudden and expensive risks that most of us can't afford. If you look at these words again: suddenly and expensive. It does not state predictable and affordable. Over the years, we have a person who pays a bill with a larger wallet. Most of us rarely pay for any of our own medical expenses. At least until now.
As everyone knows, people who have more money tend to have more consumption. Insurance companies are no different; they are larger people with wallets. Health care providers also know this. In the past 50-60 years, suppliers have increased prices to see what they can get, while insurers are negotiating larger discounts. This is how healthcare becomes a big business. The insurance company paid the fee and now we have to bear the higher premiums today.
The pricing transparency of the medical industry is zero. Partly because we never need to know because other people are paying most of the bills. Another reason is that no one buys medical expenses like buying other consumables. The health care provider knows this and takes advantage of this. What is the price of the fee charged by the insurance company and the cash price? Can be completely different. Which one do you have to pay?
If you ask me, this is a highway robbery. Take a typical generic drug at your local pharmacy. A person may spend about twenty dollars for an insurance company, but if you pay a cash price, your price may be ten dollars. why? This is because they can.
vice versa. If you ask for a cash price, it may be twice the negotiated price of the insurance company. Many health care providers will charge patients with billing amounts and discount amounts. It's a bit like because you ask me to charge you more.
Personal case study: My child was injured. The expert cannot judge if it has broken. They want to be cautious, but I want to know if this is just a breeze or a small part. The doctor suggested that we perform an MRI on his hand to determine. Just like any loving father, I asked if I would pay for cash, I have a high deductible health plan. He said that the amount approved by the insurance company is $350 [this is a small MRI machine]. He went on to say that I didn't do anything. So if you pay in cash, I will charge you $450.
Because many policyholders have a High Deductible Health Plan [HDHP] or a Health Savings Account Plan [HSA], many providers are aware that patients are responsible for the initial cost. Depending on the view, this may be good or bad.
First of all, there are negative views. Many people expect insurance companies to pay the first dollar insurance. Each doctor visit, lab test or prescription drug comes out of your pocket first and applies to your deductible. Some people may not like this idea.
On the other hand, you can better control your expenses while saving you money. For many people, the net benefit is worth it. They can ask more about their health care why? This is because this is their money. More importantly, you should ask more questions about your health care.
At the end of the day, this is your health care and your money. Finding a happy middle ground between coverage costs and acquisition costs can be overwhelming and expensive. Find out what's important to you and ask enough questions so you can make better educational decisions that will save you thousands of dollars. After all, this is your money.
Orignal From: Healthcare billing problem: sudden and expensive
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