The power of bargaining for medical costs

[PSPS]

Remember when Part D Medicare was written to include bush's demand that drug prices not be negotiated? In other words, bush wanted to be sure that big pharma's price gouging was codified into law. After all, it's only taxpayer's money, right?

Anyone who has medical insurance with prescription coverage can see the difference. You usually get some kind of statement from the insurance company showing "charge" and "allowed amount." The difference in the price is what the insurance company negotiated. I know that after I dropped my prescription coverage because the premiums were too high, the pharmacy began charging me almost twice what they were charging before. (The insurance company was not paying the difference as this was all under my deductible limits. I was and am paying 100% of my prescription costs, I just don't benefit from the insurance company's negotiated price anymore.) And keep in mind that, even at the discounted rate, everyone is still making a profit. It just isn't the obscene profit that they can get away with absent any restraints from having to negotiate a price.

Well, this same effect can be seen in all medical services. Just today, I received a statement from my insurance company showing the charges related to a routine blood test I have every year. The charge was $115 but the "allowed amount" was $29. Again, the insurance company is not paying the difference because this is all under my deductible limit. I will be responsible for and pay $29 for this test and everyone will still make a profit. Yet, if I had no insurance at all, I would have to pay almost 400% more. Where do you think this extra money goes? Lavish CEO salaries, profit-seeking "shareholders," and, or course, political contributions.

So now you see why the private insurance companies are pulling out the stops to defeat any kind of meaningful healthcare legislation. They're literally making a killing out of keeping as many people as possible uninsured.

[crickets]

1. Hearty 5th rec from one of the uninsured.

The amount of money I just spent getting treatment for a broken wrist was amazing. The only thing more annoying than the inflated bills was the doctor who was attempting to 'help' by not prescribing the minimal but necessary physical therapy after the cast came off. It took some serious discussion to get him to come around. Money spent now, however painful to the pocketbook, potentially could save me lots of pain and money down the line.

edit: I see someone has anonymously unrecced in the time it took me to post. Way to own that corporate opinion, whoever you are.

:eyes: