How health insurance billing works?

by seanpic » Wed May 29, 2013 05:54 pm

Hospital billed $1040.06, insurance paid only $416.02, letter states I owe $0. Who paid for the remaining $624?

Total Comments: 1

Posted: Sun Jun 02, 2013 04:56 am Post Subject:

No one "paid" the remaining $624. Under contract with health insurance companies such as HMOs and PPOs, service providers (hospitals, doctors, laboratories, etc) agree to accept pre-negotiated fees for certain services. The hospital bills the full amount so that it will not be accused of overbilling non-insurance patients. But non-insurance patients can negotiate for the same kinds of reductions in their billings . . . if they are aware of the differences that exist.

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