Wednesday, August 24, 2011

Why is it that a person without health insurance has to pay full price for a doctor's visit...?

... but when someone with heath insurance visits the doctor, there is a discount on the cost when it is covered by the insurance? I had gone for a year without health insurance, and I had to make a few different trips to the doctor. Every time I received the bill, it was for the full amount of the visit. Now that I have health insurance, I went to my insurance website to see if my doctor's visit had been covered, and it said that the cost had been reduced (i.e. instead of the insurance company having to pay the $210, they only paid $65). Why is that? Shouldn't it be the other way around? People with no health insurance should be paying the lower price out of pocket.
--------------------
Quite simply, economics. Insurance companies negotiate lower rates with doctors and medical groups in order to secure better prices for their customers. In exchange for the increased traffic from the insurance companies, the doctors, hospitals, etc. agree to provide services at a price lower than they would otherwise charge. In other words, they compensate for the lower prices with increased numbers of patients. If you did not pay for health insurance yourself, and were still charged a lower rate, that cost would still be paid by somebody, namely the government. It's called "socialized medicine". So now, your "health insurance" is provided by the government and the "premiums" are paid by the citizens through taxation, regardless of whether they want to pay for you or not. Some people would refer to you as uninsured while to others you're just a burden.
Source

No comments:

Post a Comment