The opaqueness of medical pricing 1
Go to almost any business for a product or service, and you can expect to be told what it will cost you, or at least to get a plausible estimate. The big exception is medicine. You’re never told what anything will cost. If you press your provider, the best you’ll get is a spread of a couple of orders of magnitude. People sometimes get hit with huge charges that they weren’t prepared for.
I recently experienced a bit of this. My medical provider billed me for $630 for a routine blood test as part of an annual physical. This came as a complete surprise. I called the billing department, and the man who took my call said that I should have been billed only for the copay, with insurance covering the rest. He filed an inquiry on it, which he said might take a couple of weeks to process. This left a big question open: Do blood tests by my provider routinely cost over $600? That’s a lot, regardless of whether I’m paying for it or Medicare is. Since he was working for billing, he wasn’t able to answer that question.
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It would be hard to believe all the outrages described in Overcharged if public information and personal experience didn’t back them up so much. We all know that medical costs are skyrocketing. This book goes into many of the details and provides a comprehensive explanation.