It is a good start, but he doesn't have the detail at the local level to see what is going on - the prices are all over the map and there is no way to rationally determine what is expensive.
I have a weird plan where I pay a percentage of the total cost, but have to pay for everything first and then get reimbursed; but ultimately a more expensive operation ends up costing me more, so it always makes sense to shop around.
As a result, I know all the cash costs for an upcoming outpatient surgery I am having, and whether they offer cash discounts.
The difference between various hospitals and service centers is HUGE, like 5 to 8 times from one place to another.
Imaging center "A" : CT scan $232 ; Chest Xray: $33; EKG: $21
Hospitals "A" and "B" : CT scan >$1000; Xray $185; EKG: > $100
You end up renting the operating room (the surgeon has privileges at 4 different locations):
(new, shiny, modern) Surgery Center "A": $1200 with cash discount
Hospital "A" : no exact price, "range is $7K to $11K, typical is $9500"
Hospital "B" : no exact price, "range is about $7500, cash discount = $5000"
HOW can it even be reasonable that there is such a discrepancy in pricing? For one hospital, the CT scan "interpretation charge" was more than the $232 I spent on the entire scan + interpretation at the imaging place I went to.
(And yes, I used the exact same billing code in discussions with all the medical billing people I talked to.)
I should add, that I think that part of what is going on with the hospitals, is to make cash payments so cumbersome, that people are herded into the arms of the insurance companies.
Comments
It is a good start, but he doesn't have the detail at the local level to see what is going on - the prices are all over the map and there is no way to rationally determine what is expensive.
I have a weird plan where I pay a percentage of the total cost, but have to pay for everything first and then get reimbursed; but ultimately a more expensive operation ends up costing me more, so it always makes sense to shop around.
As a result, I know all the cash costs for an upcoming outpatient surgery I am having, and whether they offer cash discounts.
The difference between various hospitals and service centers is HUGE, like 5 to 8 times from one place to another.
Imaging center "A" : CT scan $232 ; Chest Xray: $33; EKG: $21
Hospitals "A" and "B" : CT scan >$1000; Xray $185; EKG: > $100
You end up renting the operating room (the surgeon has privileges at 4 different locations):
(new, shiny, modern) Surgery Center "A": $1200 with cash discount
Hospital "A" : no exact price, "range is $7K to $11K, typical is $9500"
Hospital "B" : no exact price, "range is about $7500, cash discount = $5000"
HOW can it even be reasonable that there is such a discrepancy in pricing? For one hospital, the CT scan "interpretation charge" was more than the $232 I spent on the entire scan + interpretation at the imaging place I went to.
(And yes, I used the exact same billing code in discussions with all the medical billing people I talked to.)
I should add, that I think that part of what is going on with the hospitals, is to make cash payments so cumbersome, that people are herded into the arms of the insurance companies.