I have often told the story about the time my wife unknowingly tried to schedule a CT scan at a nearby hospital outpatient department. As luck would have it, prior authorization is all that saved us from a huge bill, of which her share was going to be $2,700. I quickly found a free-standing radiology clinic that had a contract with Blue Cross Blue Shield (BCBS) of Texas for $403. Oddly enough, BCBS was willing to approve a scan at either facility. Nobody called her to explain the huge mistake she was about to make by getting a diagnostic scan at a hospital-owned facility. Here is the thing: Health insurers, Medicare and Medicaid pay hospitals higher prices for the same services that are available elsewhere for a fraction of the cost. Neither do payers alert patients that cheaper alternatives exist.
Category: Cost of Healthcare
Monday Links
- Trustees: Social Security to run out in 2033; Medicare runs out in 2031.
- The earth’s population just passed 8 billion. Why some scholars think that’s good.
- Awards for dysfunction in health care.
- Judge: Obamacare preventive medicine freebies are out: Five things to know. Why the mandates were a waste of money anyway.
- What preventive procedures would patients pay for with their own money?
Is a Single Test for 50 Cancers Worth It? Maybe; Maybe Not
Cancer is a dreaded disease. People often worry more about getting cancer than heart disease, the No. 1 killer more likely to take their lives. Indeed, Mutual of Omaha sent me applications for cancer coverage on several occasions. I’ve heard those policies are very profitable for insurance companies because people far over-estimate their risk of…
Is Medicare Running Out of Money?
Here is the actual state of affairs.
Medicare Part A (hospital insurance) has a trust fund and a payroll tax.
For many years, the receipts from payroll taxes exceeded the benefits paid out. So, the trust fund was in surplus. The extra funds were spent on other government programs and special government bonds were created, but not the kind of bond that is bought and sold on Wall Street. They were basically IOUs the government wrote to itself.