[thinkingeric]

Something to add to the discussion: She says "my recent M.R.I. cost $1,300 at the “retail” rate, while the rate negotiated by the insurance company was $700."

I have insurance and the insurance company (BCBS) will only pay what it thinks is appropriate for a service, not some negotiated rate. That is, if the doctor, hospital, or lab says that it costs $1,300, but the insurance company wants to pay $700, I'm stuck for the other $600. The result is that in order to meet the high deductible (at which point I no longer have to pay out of pocket like this), I pay way beyond the amount of the deductible since only the approved rates are applied. In practice, I end up paying out 175% or more of the deductible amount.

I suspect that our experience will soon become the norm, if its not already.

[thinkingeric]

Also, this is of course over and above what my company pays in premiums. Altogether it is a significant amount of money for a family of four that has no major medical problems. For a small business, the overall burden is problematic.