It's nothing to do with sympathy. Many businesses try to charge different prices to different consumers based on ability to pay. If you charge a single fixed pr

It's nothing to do with sympathy. Many businesses try to charge different prices to different consumers based on ability to pay. If you charge a single fixed price, you'll miss out on some sales (to people who'd buy your product at a lower price) and on some profits (from people who'd pay more than you're charging). It's the same phenomenon behind coupons, sales, 'premium' and 'budget' versions, etc. etc. From a provider's point of view, the fact that someone does or doesn't have insurance is an important signal about what s/he'll pay for medical services, and they're rational to take advantage of it.