The Thing that Kills me About Healthcare
Have you ever had to pay a hospital or doctor’s bill? If so, you may have been dumbfounded by how bloody much it cost. This is understandable.
Have you ever heard a worker in the healthcare field bitch about HMOs? If so, you may have been dumbfounded by how bloody cheap they are. This is also understandable.
Now, have you ever really thought about both sides of it?
Let me not get into any arguments or anything. As my friends know, I work for an HMO and I love my job. Besides that, I love the company I work for, so I clearly have no will to bit the hand that feeds me. Actually, this has nothing to do with my job. This has to do with my own personal healthcare. Me, I work for a medicare company. I’m neither disabled nor at or over the age of 65. I am insured by a commercial HMO. And I recently had surgery to remove the polyps from my nose.
Today, I had an impulse to go out to my HMO’s site to see how much they were billed for my surgery. They have this awesome function where you can see your own billing history, including the amount that your providers charged, the amount the HMO paid (at the contracted rate) and the amount of your copay. Well, MY copay in this case. For the year, it’s been 520.
My surgery was 4/6/07, with and overnight stay, and a follow-up visit on the 9th to get all the cotton packing ripped out of my nose (ow!). The HMO won’t give me a breakdown showing the billing codes or anything, but they do give me a total for each billing party. On the 6th, I paid my copay of 250 and went into surgery prep. By the time I came out, 5 different parties had performed billable procedures on me.
Bill Party Bill Amt Pay Amt % Pd Hospital 24,809.20 2,808.20 11.3 My Surgeon 21,100.00 2,508.44 11.9 Anesthesia 1,620.00 1,205.60 74.4 Pathology 775.00 199.29 25.7 Someone else 85.00 62.63 73.7 Total 48,389.20 6,784.16 14.0
Look that over for a while; absorb it.
The hospital billed nearly 25 large. My HMO paid 11.3% of that charge. Only 14% of the total bill was paid. I’m thinking about a friend who is pretty much eternally in debt due to hospital bills. I’m guessing the hospital charges people about the same amount that it charges HMOs, but the individual people are such that they lack the power to respond as an HMO would.
I mean, imagine getting a bill from the local hospital for 48,389.20, staring at it for a few moments, checking the medicare allowables for the codes you’re being billed for, and then writing out a check for 6784.16 (14% of the bill) attached to a letter saying “After reviewing your bill, I have decided that this is sufficient. I have enclosed payment in full. Thanks for doing such a great job on the surgery.”
Friends, that’s just for my surgery. My total bill for this year so far is 57,277.35 but my HMO has paid only 10,633.16, about 18.6% of the bill. Sure, not having health insurance sucks, but paying less than 20% of your bills is better than the outrageous rates that some care providers are charging. I know there are exceptional cases, but the trend is that providers receive less money than they bill, and they manage to stay in business for a great many years doing business that way, so it’s not like 18.6% is too little.
It’s just that the individual person needs a little more muscle behind them before they can contest charges this successfully.
