As I understand it, the inflated prices are to cover price breaks given to other groups (especially Medicaid, but also Medicare): https://johnhcochrane.blogspot

As I understand it, the inflated prices are to cover price breaks given to other groups (especially Medicaid, but also Medicare): https://johnhcochrane.blogspot.com/2018/11/cross-subsidies-and-monopolization.html https://johnhcochrane.blogspot.com/2018/11/cross-subsidies-a... . Insurance companies generally get “most favored nation” clauses so that they all pay the same price as each other. EOBs show the list price for a service, and the much smaller amount actually paid. The people who really get the short end of the stick are uninsured: they only see the list price and maybe an offer to negotiate.