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re: Study: significant increase in patients who can't afford to pay full hospital bill

Posted on 6/28/17 at 1:58 am to
Posted by PrimeTime Money
Houston, Texas, USA
Member since Nov 2012
27498 posts
Posted on 6/28/17 at 1:58 am to
I broke my ankle several months ago and had to have a 45 minute surgery to put in some screws and a plate and I went home after it was done.

The bill was $85,000

As if anybody could actually pay $85,000 for a short, fairly common surgery, and as if it actually cost that much.

My portion with insurance was like $1500.
This post was edited on 6/28/17 at 2:00 am
Posted by the_watcher
Jarule's House
Member since Nov 2005
3451 posts
Posted on 6/28/17 at 8:49 am to
quote:

As if anybody could actually pay $85,000 for a short, fairly common surgery, and as if it actually cost that much.


Most of you are so ignorant about this topic it makes my head hurt. Congrats to the808bass for being the only informed person in the thread.

I worked for a healthcare company that staffed/managed ED's across the country for several years. My job was to literally analyze patient/third party insurance payments every day and predict future revenue per patient broken out by payer class by facility. I was responsible for over 50 separate facilities.

Hospitals know exactly what actual payment they will get based on demographics and insurance companies/CMS know exactly what they will pay. What price would you charge for a broken ankle surgery if the actual cost to the hospital was $8.5k but you knew you will only get 10% of what you charge?

Also, spoiler alert - most people don't pay their medical bills. Our company wrote of tens of millions in bad debt PER MONTH. Most facilities average anywhere from $125-$250 dollars per patient when you factor in what medicare/medicaid pay, write offs, self pay patients that you know will never pay a dime, and insurance/third party disputes. The system is terrible and the main problem is the two decisions makers in a hospital transaction (doctor and patient) are not the ones making decisions on third party reimbursement levels.
Posted by Jax-Tiger
Port Saint Lucie, FL
Member since Jan 2005
25155 posts
Posted on 6/28/17 at 12:51 pm to
quote:

I broke my ankle several months ago and had to have a 45 minute surgery to put in some screws and a plate and I went home after it was done.

The bill was $85,000

As if anybody could actually pay $85,000 for a short, fairly common surgery, and as if it actually cost that much.

My portion with insurance was like $1500.



And that is why costs go up. You're just happy you didn't pay $85K. You never asked your providers what it was going to cost. Insurance was going to take care of the costs, so you just paid 20%, or whatever.

I work in IT with a lot of Indian H-1B visa employees. They talk about their healthcare system. They have a government "free" care, but it sucks. They have affordable private insurance that is comparable to the care we get here in the US, but costs a fraction of what we pay here. The system there is not set up to drive up the costs of everything in the supply chain. It is a free market private system, and the market keeps the costs down.

The cost of open heart surgery in India is 5-10% of what it costs in the US. Even if you factor in doctor's salaries, the cost is still 1/5 of what the surgery would cost in the US.

We think we're getting a good deal when our $85K surgery only costs us $1500. That $1500 is in addition to our paying $10K to $30K in premiums. There is no free market downward pressure on the cost of anything.
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