SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Knighty Tin who wrote (123959)8/2/2010 12:15:30 PM
From: Freedom Fighter  Read Replies (1) of 132070
 
"They show what they would charge somebody without insurance, then, what Medicare allowed. "

Every medical bill I have every gotten from a wide variety of private insurance companies shows "what the doctor charged" and what the "insurance company allowed". There is always a big difference.

There are two semi scams going on here.

1. Doctors/hospitals know that they can't get the amount they charge. So they charge more than they actually want, it gets discounted, and get what they actually want.

2. If medicare/medicaid bullies their way to larger discounts, doctors/hospitals pass those margin losses onto the private sector and raise the costs for everyone else for a net of zero.

Heath insurance companies couldn't give a rats ass what medical costs are or what medical care providers charge. Like all insurance companies, they calculate their costs, pass them on to consumers, and add in a profit margin that justifies their existence as a business and keeps them competitive with the rest of the industry.

They have a motivation to reduce costs.

Geico for example doesn't steal market share in auto insurance every year by charging more. They are a more efficient company than their competitors, can afford to charge less, and still maintain high margins.

I would argue we badly need for the private insurance market to be more competitive and stop locking companies out of various states etc.. That would help.



Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News