Don’t wait for the bill to find out what the hospital costs
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My older brother recently underwent knee replacement surgery. He attempted to gather information from his orthopedic team regarding the anticipated costs. As he was on the verge of enrolling in Medicare (yes, he’s the older one), he wanted to understand his out-of-pocket expenses under different insurance plans.
Unfortunately, none of the healthcare professionals could provide assistance. Even with their medical expertise, they were perplexed by the complexities of the insurance system when it came to deciphering their own billing.
This level of confusion is unacceptable, but it merely scratches the surface of the dysfunction in healthcare pricing in the US.
Despite having extensively covered the bewildering nature of American healthcare prices in my previous writings (here, among other sources), I thought it impossible to become even more incensed about the issue. However, my frustration reached new heights upon encountering a study conducted by Merina Thomas, Peter Cram, and their team at the University of Texas Medical Branch in Galveston. The researchers investigated healthcare prices at 60 US hospitals, utilizing both online searches and phone inquiries from “secret shoppers” to obtain pricing information.
What were the key findings of the study?
1. Significant price discrepancies existed, underscoring the importance of patient comparison shopping.
For instance, a brain MRI cost $418 at one prestigious hospital, while another charged $6864. The average price was around $2500.
Similarly, an uncomplicated vaginal childbirth varied from less than $11,000 to over $14,000 at different top-tier hospitals.
2. Prices were often inconsistent even within the same hospitals, with online quotes differing from phone estimates. Some variations were shockingly large.
For example, a hospital quoted $20,000 online for childbirth but only $4000 over the phone.
Similarly, an MRI was priced at $7000 online compared to less than $2000 via telephone.
Visual representation of these disparities:
Variation in hospital prices: telephone estimates vs online
JAMA Int Med
What can Americans do in response?
First, research price information online when facing potential out-of-pocket costs.
Second, if online data is not available, place a phone call to inquire about pricing.
Third, even if online details are found, contact the hospital directly as phone conversations may yield lower estimates. Make note of the individual you spoke with and hold the hospital accountable for the lower estimate.
Lastly, when selecting a hospital for a procedure, take the time to compare prices. Without pressure from informed patients, hospitals will continue overcharging and concealing their pricing practices.
