Quote:
Originally Posted by Mutt
interesting - this refutes Robbie's claim that the lower cost to the uninsured is some type of shady deal between the hospitals and the insurance companies.
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A lot of it depends on what kind of service you were there for and if you actively negotiated. If I remember correctly Robbie said he had a lawyer help him negotiate his bill (I may be remembering that incorrectly though).
Here are some basics:
There are roughly 30 million people in the US with no insurance. I have no idea how many millions of illegals there are here that also have no insurance. These people still get sick, hurt, pregnant etc. They just go to the ER and urgent care centers to get treated because those places won't turn them away.
Many of these people end up unable to pay their bill so the hospital either forgives the debt or they go after them legally and the people often end up declaring bankruptcy to avoid paying the debt. This saddles the hospital with all the cost of that person's care. So, in an effort to make up for those who don't pay they overcharge those who do pay. Most people who have health insurance don't really care or they might be a little outraged at the high prices of everything, but they do nothing about it because the money to pay the bill isn't coming out of their pocket.
If you don't have insurance you will still get one of these inflated bills where they charge you $25 for an aspirin or $15 for a blanket etc. You can choose to dispute it and they will often work with you to lower the bill.
Pharmacies, however, are often a different story. There is a maximum dollar amount insurance companies will pay for certain medications. Say for example an insurance company will pay $150 for a 30 day supply of a medication and you have a $15 co-pay. The pharmacy will charge you $165 for the med. You pay your $15 and the insurance pays the rest. Now, if you go in and want to pay cash for that medication they might charge you $200. They can charge you whatever they want because there is no insurance company telling them how much to bill for it. Many pharmacies will use cash paying customers to make up for lower profits from those who have insurance.
It can be an eye opening experience. Just call around to several local pharmacies and ask them for the cash price of a medication. You will likely get many very different answers and a potentially wide variety of medication.
Here is the kicker. All of those prices are grossly inflated. For example. I have asthma and use an inhaler. The cost of that inhaler ranges between $45-$65 depending on where I go to buy it. I can buy the exact same medicine from the exact same manufacturer online for $10.