So what is that big discount I receive on my health insurance benefits form?
Have you ever wondered what that big discount is on your health insurance benefits form? How can the discount be so large? I have seen bills for $20,000 discounted down to $5000. Why is this?
The hospital has what is called a gross bill. As far as I know, almost no one pays this super high retail price. It seems there is an incentive for the hospital to have this artificially high rate so that when they provide uncompensated care they can declare a high level of charitable care.
The fact is that private insurance companies come in at about 50% of the gross rate as payment. Medicare comes in at about 38% of the gross bill. This is supposed to be a breakeven point for the hospital as no one is supposed to make a profit on Medicare. Here is the kicker: Medicaid, or what is called MediCal in California, in many cases only pays 9% of the gross bill. The hospital loses money on each MediCal patient.
Since it is almost impossible to get a patient covered who is eligible, the hospitals simply treat and release the patients and charge extra to the private payers to make up the difference. ObamaCare is adding 11,000,000 more patients to the rolls of Medicaid. Do you think your premium costs are going up?
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May '10
Re: So what is that big discount I receive on my health insurance benefits form?
Fascinating stuff. Thanks, and keep it coming!
May '10
Re: So what is that big discount I receive on my health insurance benefits form?
ObamaCare is distressing on so many levels - healthcare, economics, civil liberties, etc etc. I appreciate your posts on Ricochet. Any suggestions you have for mitigating the damage of this bill would be greatly appreciated. I saw George Savage's post this morning and hope that everyone else who reads it or receives email from Heritage.org will help spread the new TV spot from Heritage Action. Do you think this petition has any chance of succeeding?
Jun '10
Re: So what is that big discount I receive on my health insurance benefits form?
Jul '10
Re: So what is that big discount I receive on my health insurance benefits form?
As a veteran who receives (maybe "earned" is more appropriate) US government healthcare, I wonder if the quality of my VA healthcare will now fall as the government takes on such a larger burden. Naive of me, no?
Re: So what is that big discount I receive on my health insurance benefits form?
The repeal of Obamacare is all about November's election. If the people are as mad as they seem and they stay mad and we win enough seats it will either be repealed or unfunded.