Medical service pricing is insane
| Billed | Savings | My co-pay | Insurance pays |
| 44.00 | 36.51 | 2.25 | 5.24 |
| 51.00 | 40.81 | 3.06 | 7.13 |
| 99.00 | 86.08 | 3.88 | 9.04 |
| 68.64 | 63.06 | 1.67 | 3.91 |
| 61.36 | 56.37 | 1.50 | 3.49 |
| 78.00 | 68.64 | 2.81 | 6.55 |
| $402.00 | $351.47 | $15.17 | $35.36 |
My health care provider charged me $400 for the tests. They only got paid $50, an 88% discount, because that’s what Athem has negotiated. I paid $15 of that $50. Huh? How do these numbers make sense? In no way is this free market rational pricing.
When my mother died, in 2000, she went to the hospital with urgent problems. With no insurance. They operated on her for a few hours, she spent a day in intensive care, and she died. It was pretty fucking awful. It also cost some $50,000, billable to her estate. The hospital gave us a 35% discount for paying the bill in cash.
I’m fortunate to be able to afford to buy my own health insurance and healthcare. My family was fortunate that my mother could get the care she needed and the medical bills didn’t bankrupt us. In neither case does the pricing make sense. It’s particularly bizarre that the primary value of insurance seems to be pre-negotiated lower prices for healthcare. Instead of, you know, insurance.


