Behind Medicare’s Hospital Bill ‘Discount’

A short Wall Street Journal article by Matthew Heimer mentioned the so called discount that Medicare obtains on hospital bills. It stated that the price comparison website NerdWallet released a study and found a catchy way to summarize: "Medicare obtains a discount of 73% on the average hospital bill," the site says, paying 27 cents for every dollar it's charged. It goes on to say that the hospital list prices are almost always higher than what Medicare or any private insurer will pay. Also another way to flip the same data might be to say that the average hospital charges Medicare 3.7 times as much as Medicare is likely to pay it. Along with many others, I personally feel this has the effect of over inflating overall health care costs and many without health insurance get hit the hardest!

Although the original web link is no longer working, I listed the original source below anyway.


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