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View Diary: New government data shows how messed up health care pricing is (62 comments)

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  •  Medicare is the only system that pegs (21+ / 0-)

    what it pays medical providers to what it costs those providers to provide services.  In other words, the only sensible system out there.

    The chargemaster or list prices have no basis in any reality whatsoever.  It is complete nonsense and why medical care costs so much more.  Plus the chargemasters and negotiations they cause give the insurance companies a basis for their purely administrative existence. Using medicare as chargemaster and list price not only assures a proper price is paid, but also that administrative costs are minimized.

    "To recognize error, to cut losses, to alter course, is the most repugnant option in government." Historian Barbara Tuchman

    by Publius2008 on Wed May 08, 2013 at 03:50:05 PM PDT

    •  yep (8+ / 0-)

      A lot of factors go into calculating a provider's rate per Relative Value Unit, but once you have it, the reimbursement is straightforward. Yes, the RBRVS can always stand adjustment and tweaking as technology changes, but the concept is plain.

      But, as you note, if it worked that way then what "value" would insurance companies provide? And what profit could they extort?

      Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. -- K.Marx A.Lincoln

      by N in Seattle on Wed May 08, 2013 at 04:31:20 PM PDT

      [ Parent ]

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