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> Insurance paid UCSF $16,000 after discount. There you go. The insurance company is actually incentivized to not negotiate a lower price. What if they refuse
by boplicity 5y ago
> Insurance paid UCSF $16,000 after discount.
There you go. The insurance company is actually incentivized to not negotiate a lower price.
What if they refuse a ludicrous price? Their customers will complain -- what, what? go without MRIs?
Worse -- the insurance company gets to keep 20% of the costs as profit. For a $16,000 bill, that's $3,200. For a $3,000 bill, that's just $600.
So why, again, would they fight for a lower bill? No reason. Competition from other companies? Unfortunately, they're all playing the same game, and lower premiums are simply not happening.
- refurb 5y agoNot really accurate. The insurer did negotiate the price down - from $20,000, so a 20% discount. But yes, UCSF just leverages their name and the desire for insurers to have them in network. Their attitude is basically “no, I won’t go lower, and you’ll pay anyways”. No, insurance companies don’t keep 20% as profit. They can keep 20% in reserve, the rest has to be paid out as benefits that calendar year. United Healthcare’s profit margin is like 2-4%. And of course they fight to lower their insurance premiums, that’s how they attract new customers.
- boplicity 5y ago> The insurer did negotiate the price down - from $20,000, so a 20% discount. I've just got to point out that they're adding back 20% -- to keep in "reserve," as you say. So what's the advantage of insurance? The "premiums" force the scam pricing on everyone! (And not just the direct victims of this type of fraud.)