Large Companies Weigh Dropping Benefits

[Norwayguy]

The dumbest concept this country ever came up with is employers offering health insurance. This should have been nipped in the bud after WWII.

No the dumbest thing was copays to the point people have no idea of the cost of their medical care

 

[Crabcake Johnny]

Agreed. Equally dumb was the lack of any price transparency. There is not a service or product you can get where you don't know the costs upfront.

I've made this analogy before, but imagine getting a transmission replaced and the bill was $12,000.

What?

"But we need highly trained techs to replace a transmission. They need to go through auto school which is expensive, then an average of 3 years on the job. We also fix a lot of cars where the owners never pay the bill, so we have to include that in the price."

Pricing is absurd. Who says it costs "$3,000" to treat a broken arm in the ER. Based on what. It's based on the fact that:

A: You're not going to know that it's $3,000 until you get the bill
B: Unless you pay it you're off to collections and your credit is trashed

Can a heart surgeon's compensation be partially based on that fact that he's saving your life? If that's the case, why didn't the paramedic make $150,000?

If you hired a web designer to create a site then sent you a $8,000 bill, would you have a few questions?

 

[moonlightandmargaritas]

Agreed. Equally dumb was the lack of any price transparency. There is not a service or product you can get where you don't know the costs upfront.

I've made this analogy before, but imagine getting a transmission replaced and the bill was $12,000.

What?

"But we need highly trained techs to replace a transmission. They need to go through auto school which is expensive, then an average of 3 years on the job. We also fix a lot of cars where the owners never pay the bill, so we have to include that in the price."

Pricing is absurd. Who says it costs "$3,000" to treat a broken arm in the ER. Based on what. It's based on the fact that:

A: You're not going to know that it's $3,000 until you get the bill
B: Unless you pay it you're off to collections and your credit is trashed

Can a heart surgeon's compensation be partially based on that fact that he's saving your life? If that's the case, why didn't the paramedic make $150,000?

If you hired a web designer to create a site then sent you a $8,000 bill, would you have a few questions?

Totally agree.

In addition, third-party payors exacerbate the problem. Nobody shops too hard with somebody else's money!

 

[Norwayguy]

Agreed. Equally dumb was the lack of any price transparency. There is not a service or product you can get where you don't know the costs upfront.

I've made this analogy before, but imagine getting a transmission replaced and the bill was $12,000.

What?

"But we need highly trained techs to replace a transmission. They need to go through auto school which is expensive, then an average of 3 years on the job. We also fix a lot of cars where the owners never pay the bill, so we have to include that in the price."

Pricing is absurd. Who says it costs "$3,000" to treat a broken arm in the ER. Based on what. It's based on the fact that:

A: You're not going to know that it's $3,000 until you get the bill
B: Unless you pay it you're off to collections and your credit is trashed

If you hired a web designer to create a site then sent you a $8,000 bill, would you have a few questions?

I can't agree more...I needed to have some Xrays done for my back and called to try and find out he cost...here is how the conversation went

Me: I'm trying to find out what these xrays will cost
Billing: We have no idea unless you can provide us with the codes
Me: I called imaging to ask what the codes where for the xrays my Dr ordered
Imagining: Well it will depend on what exactly we do
Me: This is the numbers of my Drs form what will you do for Xrays
Imagining: I can't guarantee that these will be the codes
Me: okay billing imaging says this would be the codes
Billing: We are not allowed to provide you with the amount of discount your policy will provide, we also can't provide you with the cost of the Radioligist to review the film.
Me: can you give me the number for the Radioligists office
Rad Office: We do not provide this information in advance

Its nuts there is no transparancy...30 minutes from me we now have an Urgent care option..They have on the wall just like a meineke the costs of their procedures...

 

[Crabcake Johnny]

If we really want reform all pricing needs to be completely transparent. Can it be?

Services and Costs

Sure it can. How does an auto body shop price up a very complicated job? They do it based on state rules as to how many hours can be charged for certain things.

A fender, for example, might be a max of 1.5 hours. Then, by law, all hourly rates have to be posted. So you can go ahead and charge "$120/hr" but you'll be put out of business by the shop down the street charging $60.

All medical providers need to directly compete for business...or go out of business. Pricing needs to be agreed upon...upfront.

If I know I need a hernia operation will I get it at "XYZ" facility if I know in advance it's gonna cost $15,000? Maybe I'd better shop that around.

So if we want reform, we need places like this: http://www.patientfirst.com/ all over the place: Walk in, see the prices, get treated, pay and go home.