[vette6387]

While that may be true consider this. I was hospitalized for 24 hours recently ( In Northern California at nonprofit community hospital). The total bill was $44,000! Between Medicare and my personal health insurance, the hospital was paid less than $5,000. The hospital won’t discuss their billing practices but you have to believe that neither of these numbers fairly represent the real cost of delivering the care I received. This whole matter raises the issue of honesty in the health care.

[newzjunkey]

You have to think that $44,000, and similar outrageous charges, are a lie. If they’ll settle for $5,000, you have to think it’s closer to the real cost.

[Chode]

yes, that's all they pay...

this is roughly how it works out for surgeons, now apply the same formula to hospitals…

Insurance Payouts

As an example, take a Diagnostic Laparoscopy with a true value of $1500

First tier insurance companies will all agree the value is $1500, but…

Their negotiated rate will include a combined adjustment/write off of ~$500 because there is a high volume of patients with their insurance in your area.
Pay out = $1000

Medicare on the other hand will say - No, it’s NOT worth $1500, it’s only worth $1000

And you will take an adjustment/write off of ~$250.
Pay out = $750

Medicaid says, We DON’T CARE what it costs… we are paying you $500.
Pay out = $500