One reason hospitals charge so much is, they are bound by law to serve everyone that walks into the emergency room, regardless of ability to pay. Those folks who never had insurance before and thus never did annual checkups or wellness visits or got their shots and whatever – when they came down with something bad, it was usually an even worse case because lack of preventive care let it fester and degrade. What could have been solved for pennies with preventative care vists and diagnosis turns into expensive surgeries and meds for life. They don’t have a regular doctor, so they just go to the nearest hospital E.R. and demand to be seen.
E.R. staff and their gear is the most expensive area of a hospital, and it’s tied up by a lot of those “walk-ins” that use the E.R. like it was a family G.P.’s clinic. But the folks must still be served. So Hospitals overcharge those of us who DO have an ability to pay, thru insurance. Which is why a 3-cent pill of Ibuprofen from Walgreen’s suddenly costs ten dollars a dose at the hospital, after all the handling fees and administrative costs have been attached to it.
Fixing this aspect was a major goal of the ACA (alias, “Obamacare”). The theory being if you make EVERYBODY pay SOMETHING into a system,. it has more capacity to absorb and level-out the ones that cost extra.
The savings from reducing that flow of unqualified cases into emergency rooms was supposed to be used to offset expenses in other areas. What we’re finding, though, is a lot of Insurance companies are just keeping that savings to themselves. Same thing with reform of Workman’s Compensation – after reforms that trimmed millions in cost to businesses paying those premiums, the premiums never went down as expected. The insurance companies pocketed the savings and passed them on to shareholders.
Insurance company executives will be among the first up against the wall, come the revolution.