GlobalVillageIdiot wrote:
Then there's the difference between the "rack rate", the rate the insurance company has agreed with the doctor or hospital to pay, and what the patient ends up paying. It's not uncommon for me to see a bill like this:
Doctor office visit.....$200
Ins. co. adjustment....$90 ("exceeds maximum allowable charge of $110")
Ins. co. payment.......$95
Patient balance.........$15
If you're without insurance, you pay the $200, but if you have insurance, they've prenegotiated a $90 discount. I've always wondered what happens to that $90, from an accounting standpoint...does the doctor claim it on his/her taxes as a loss?
Wow, your insurance pays well.
Here's an actual explanation of benefits from one of my doctors:
Doctor office visit.....$110.00
Ins. co. adjustment....$62.01
Ins. co. payment.......$17.99
Patient co-pay.........$30.00