This is basically what health insurance companies do. They want higher billed rates from hospitals so that they can offer better "discounts." In reality, no one pays the billed rates.
Irrational? You're angry because they're trying to mislead you into thinking that "insurance" is covering 97% of a large bill. When in reality, they're only covering 60% of a small bill.
Obfuscating how that process works is a huge problem. It's how they extract lots of value out of the consumer, and why Americans pay more than most socialized medical systems while having on-par or worse outcomes.
Take a look at the list of Fortune 500 companies and notice how many are healthcare related. There is a reason it's never going to get better.
Doctor billed: $1500 Insurance allowed: $125 Insurance paid: $75 Your copay: $50