The Cost of It All I've received numerous statements from my medical insurance regarding the benefits provided. The numbers are quite interesting. First because of the shear magnitude. But also because they highlight the games played between the medical establishment & the insurance companies.

Here's an example.

Biller	Bill	Fee Adjustment	Paid
Hospital	$36,700	$21,835	$14,500
Surgeon	$3,311	$1,037	$2,273
Anasthesia	$2,150	$600	$1,550

The hospital bills $36.7k but settles for roughly $15k! That's one hell of a difference.

The "labor" charges aren't as deeply discounted. But again they "charge" one amount and settle for something significantly less.

A while back Money magazine dedicated a whole issue to the cost of healthcare. I remember one article discussing how hospitals have no idea what their true cost really are. I wonder if this is a symptom.

I'm in a PPO plan. For all these charges my copay is $400. My understanding is that the "fee adjustment" has to do with a rate negotiated between the insurance company & the health care provider. Do those without insurance have to cough up the full amount? Or is their yet another fee structure?

I hope I never get sick again.  ¶ 4.1.07

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