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Are "cash" prices always cheaper than what's billed to insurers? What if one starts an "alt-isurance" company that just gives people cash for their medical bill
by lxe 7y ago
Are "cash" prices always cheaper than what's billed to insurers? What if one starts an "alt-isurance" company that just gives people cash for their medical bills that operates completely outside the medical industry network?
- chiph 7y agoWe already have that .. sort of. They're called Health Savings Accounts and by law they're tied to high-deductible policies. Mine is $2500, so I'm on the hook up to that amount. With some caveats, such as payments for drugs, etc. The good news is that money is yours to keep and use (only!) for health related expenses. So unlike a FSA the balance will roll over to the next year and continue earning interest. The other trend along these lines are concierge doctors. They don't accept insurance, and typically operate on a subscription basis (X dollars per month).
- usaar333 7y agoNo. Not all hospitals are willing to offer discounts. Sometimes, the cash price is higher than the insurance rate (which is negotiated). It's pretty hard to pull off an external company since many hospitals won't even tell you what their negotiated rates are (I have an HDHP where I'd think the point is to shop around, but can't because of the lack of price transparency). For what it is worth, goodrx.com is doing a variant of this with drugs.
- yencabulator 7y agoThat's called "indemnity insurance", and it very much exists. You get $x every time you need to see a doctor (capped to $y/year, or such). E.g. $3000/day if you're confined into a hospital. It's tough to figure out the plan that works well for non-routine things. But then again, bigger operations are tough for everyone who doesn't have the best employer-based HMO/PPO plans.