Hospital Stays Top $1,200 Out-of-pocket Even with Insurance

[Tkruger]

The biggest change in out-of-pocket spending came from two types of insurance plan charges. Deductibles - the amount patients pay for their care before their insurance kicks in - increased 86 percent. Coinsurance - a percentage of hospital costs insurance plans often expect patients to pay - rose 33 percent.

Hospital stays top $1,200 out-of-pocket even with insurance

 

[somarco]

On the other hand, $1200 OOP isn't so bad for a hospital stay.

 

[Tkruger]

I agree with you totally. Something to note that this report began before OCare took hold as noted in the article.

What has me scratching my head is what outpatient services would cost only that small number?

I have a personal case I'm familiar with that the hospital billed $ 37K for a 6 hour total procedure and by the time it was submitted to the carrier it has been reduced by $ 35K. Had this person not had health coverage they would have been looking at a $ 37K bill from the provider.

No matter what "reforms" happen with healthcare...until all aspects are addressed then the problem won't get fixed. Billing these rediculous amounts to those who may not be able to afford coverage (not those who choose not to have it) is part of the problem.

If you don't have coverage and choose the cash pay amount the bill should be $ 2K and not $ 37K. Providers may figure out that they are more likely to get comped on the real number by those who don't have coverage vs. ever getting close to the $ 37K originally billed.

 

[somarco]

Over 90% (probably closer to 95%) of those without insurance rarely pay anything at all.

The "inflated" prices are an accounting function.

Hospitals, like any other business, are taxed based on revenue, not billable charges. If they bill $10,000 and collect nothing, guess how much they write off?

$10,000.

Lawyers, accountants, anyone who bills for services do the same thing. They are taxed on what they collect, not what they bill. When they collect nothing they write off the full billed amount.

I run my business on a cash basis and I imagine you do the same. Regardless of what I have earned in annualized commissions, I am only taxed on what I am paid

 

[GAJ638]

Another surprise I found is with HSA'S I selected a high deductable plan with an HSA Tell me both mea nd my sccountant we are wrong My 1095 form appears to charge me for payments out of the HSA AND COUNTS IT AS INCOME, THEREFORE TAXING me on what was paid out while taking away the deduction for what i deposited. Any thoughts? Bottom line screwed again with ACA