| Similar to hospital pricing Her screenshots, taken earlier this year, speak for themselves. What they show are price hikes ranging from 575% to 675% being automatically generated by the hospital’s software. The eye-popping increases are so routine, apparently, the software even displays the formula it uses to convert reasonable medical costs to billed amounts that are much, much higher. For example, one screenshot is for sutures — that is, medical thread, a.k.a. stitches. Scripps’ system put the basic “cost per unit” at $19.30. But the system said the “computed charge per unit” was $149.58. This is how much the patient and his or her insurer would be billed. The system helpfully included a formula for reaching this amount: “$149.58 = $19.30 + ($19.30 x 675%).”
https://www.latimes.com/business/story/2021-12-10/column-hea... |
In the hospital case something much more nefarious is happening - the hospital negotiates discounts with the insurance companies, but in order to make money they inflate their costs in the first place so they can negotiate back down to a reasonable number with the insurance companies. Someone in an insurance company somewhere gets a good pat on the back for getting a great discount. But on the back side of this now if you don't have insurance the hospital is going to hit you with ridiculous costs forcing you to buy insurance. It's collusion between the hospital and the insurance company to screw the consumer.