One huge problem Brian doesn’t realize is the average person cannot pay cash for medical treatment and as such are relegated to utilizing providers that do accept their insurance. Yes that actually does increase the cost of services but sometimes you take the bad to get the good.
But from what brian has explained, the doctors “detailed inside information” does not sound to be correct. Maybe if Brian would do a little independent research he would realize that.
All doctors are willing to negotiate a better price for cash pay upfront (not check or CC but cold hard cash). The average practice pays any where from 5.5% to 20% of their billed accounts as fees to billing agencies. A Good biller can easily make 100K or more per year. Some busier multispecialty offices have two or more billers. Cost add up. If you are getting paid cash front:
1. You already paid (as opposed to insurance where it is a joke to when the money will actually come, if ever)
2. No fees paid
3. No billing costs
4. No collection costs
Doctors I work with will easily offer a 50% discount on their prices for cash up front.
Many medical offices have in house staff that do billing so the incremental expense for billing one more procedure is insignificant.
While you may have found some doctors that will give you 50% off for cash it is not anywhere close to an industry norm.
insurance where it is a joke to when the money will actually come, if ever Not quite. Medicare, for example, is required to pay interest if they haven't paid a claim within 30 days.
I agree that providers will offer discounts for cash up front. If someone has a $5k deductible, sure, paying out of pocket might make sense - but not always. If another medical issue arises later in the year, those OOP payments aren't counted against the deductible, resulting in more money OOP than needed.
Many doctors will give you a tremendous discount for cash up front. 50% may not be all the cases all the time, but it is not unheard of and happens quite frequently specially based on specialty. b
Medicare actually pays very promptly - however, everything else about them sucks. Including the reimbursement rates.