We know that many Americans chose not to buy health “coverage”, because they feel it is expensive, and it is. But what is it that goes into the cost of a “health plan”.
1) The actual cost of the medical care. Some hospitals, doctors, and other medical providers chose to offer services and supplies at a price below cost, then they over charge others to make up for the loss. Also, there are many who do not pay their medical bills. The CNN video that is posted below claims that many hospitals only collect 4 cents out of every dollar billed.
Let’s explore this…. If a hospital bills $100 million in a year, it will only collect $4 million. Presumably they are not losing money at $4 million, so why do they mark up the bill by 2500%? If you went to Starbucks, and they served you a coffee, then presented you with a $100 invoice, would YOU pay? If they asked you for $4 would you pay? Much more likely, I think. In fact maybe if hospitals stopped providing services for under cost to some, and surcharging others 2500%, they would be in better shape. Why don’t they charge everyone $6, and give their best customers a 10% discount from that?
Any provider who uses deceitful process shows a disrespect for their customer. To service one set of customers for under cost, and making other customers over pay for that is also disrespectful. In order for any provider to bill $100, then allow customers to pay $4 requires HUGE administrative costs. It requires an army of middlemen in order to make the complicated calculations required. It’s these practices which increase the cost of medical care.
At MediBid, we have developed a proprietary system, where the Seeker of care inputs their profile and makes a procedure request, and the Bidders, provide a price quote for that care. They won’t tell you that it is $20,000, but they will accept $800. They’ll just give you the honest price up front.
This honesty restores the patient/physician relationship, and results in huge savings by eliminating the middle man required in the deceitful model used by so many hospitals today.