Survey Finds High Fees Common in Medical Care

[babylonsister]

Survey Finds High Fees Common in Medical Care

By GINA KOLATA
Published: August 11, 2009


A patient in Illinois was charged $12,712 for cataract surgery. Medicare pays $675 for the same procedure. In California, a patient was charged $20,120 for a knee operation that Medicare pays $584 for. And a New Jersey patient was charged $72,000 for a spinal fusion procedure that Medicare covers for $1,629.

The charges came out of a survey sponsored by America’s Health Insurance Plans in which insurers were asked for some of the highest bills submitted to them in 2008.

The group, which represents 1,300 health insurance companies, said it had no data on the frequency of such high fees, saying that to its knowledge no one had studied that. But it said it did the survey in part to defend against efforts by the Obama administration to portray certain industry practices as a major part of the nation’s health care problems.

The health insurers, saying they felt unfairly vilified, gave the report to The New York Times before posting it online on Tuesday, explaining that they wanted to show that doctors’ fees are part of the health care problem.

The group said it had used Medicare payments for comparison because Medicare was so familiar and payments are, on average, about 80 percent of what private insurers pay.

“It’s the wild, wild West when it comes to prices of anything in the U.S. health care system, whether for a doctor visit or for hospital charges,” said Jonathan S. Skinner, a health economist at Dartmouth.

more...

http://www.nytimes.com/2009/08/12/health/policy/12insure.html?_r=1&hp

[sinkingfeeling]

1. Did anybody think to ask the insurers why they willingly pay those costs, submitted by HMO's ,

hospitals, and service providers when the same procedures can be done in other countries for a fraction of the cost? Why are we charged $10 for an aspirin and $40 for a box of tissues while in a hospital?

[Eric J in MN]

2. This is why the public option should pay doctors the same as Medicare. NT

NT