[quote=Hatfield][quote=bearishgurl]Medical providers always charge a lot when they code procedures/visits for billing purposes but end up settling for the contracted amount from the carrier, whatever that may be.[/quote]
I have a theory about this. I think what might happen is that the provider initially sends a bill for “Rack Rate” which is sometimes ten or 20 times their contracted reimbursement rate. My gut feeling is that they do this so that if the patient is uninsured or the insurer denies coverage, they can go after the patient. If the patient can’t pay, they then sell the debt to a collection agency for the usual pennies on the dollar. Pretty shifty but that’s my theory.[/quote]
That’s an interesting theory, Hatfield. Probably pretty close to the truth. “Rack rate” medical billing has always bothered the hell out of me. That alone (and the opaque pricing issues that goes along with it) is a good reason to nationalize healthcare, IMO.
Good luck with your insurance choice. As you can see from my above post, we have a Blue Cross PPO plan, and have had no problems with it.
