[HN Gopher] The fight between doctors and insurance companies ov...
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       The fight between doctors and insurance companies over 'downcoding'
        
       Author : ceejayoz
       Score  : 124 points
       Date   : 2025-10-09 12:36 UTC (10 hours ago)
        
 (HTM) web link (www.nbcnews.com)
 (TXT) w3m dump (www.nbcnews.com)
        
       | coleca wrote:
       | Good startup idea would be to work with medical practices to use
       | AI to automate the disputing of the "downcoding" by insurers.
        
         | ActionHank wrote:
         | The business will be very quickly bought up to kill the
         | product.
        
           | daveguy wrote:
           | If they can afford it. What's Mark Cuban been up to lately?
           | 
           | Edit: in case the reference isn't clear --
           | https://en.wikipedia.org/wiki/Cost_Plus_Drugs
           | 
           | And I think it is a sad state of affairs when the government
           | has been so villified that we have to depend on billionaires
           | for basic public good works.
        
             | ceejayoz wrote:
             | > the government has been so villified that we have to
             | depend on billionaires
             | 
             | https://knowyourmeme.com/memes/were-all-trying-to-find-
             | the-g...
        
         | cogman10 wrote:
         | Man this is a hellscape.
         | 
         | I can quickly see something like this turning in an AI arms
         | race between insurance and the provider with each auto-
         | approving/denying/disputing the other. All the while locking
         | out smaller players because they can't afford the 3rd party
         | disputotron.
        
         | tantalor wrote:
         | Hate it, thanks
        
         | Spivak wrote:
         | You would have to leverage the law (if you have one) that
         | involves the state resolving the dispute because otherwise the
         | automated disputes would probably be dropped on the floor. The
         | insurance company has the leverage because they're actually in
         | possession of the money and the contract that gives them
         | stupidly high discretion on how much to pay out.
         | 
         | Doing nothing but flipping the burden, doctors get paid
         | whatever they invoice and insurance have to claw it back would
         | make a lot of this stonewalling bullshit go away. But with an
         | openly corrupt government paid by insurance it'll never happen.
        
         | pragmatic wrote:
         | Its a terrible business.
         | 
         | The data is a disaster. Turnover is high, errs everywhere.
         | Disputing is the easy part. Hard part is finding the contracts
         | lol.
        
         | vjvjvjvjghv wrote:
         | The result will be that doctor AIs will be fighting insurer AIs
         | and the loser will be the patient. As always.
        
         | elwebmaster wrote:
         | Already working on this, let's connect if you are interested:
         | https://forms.gle/cxQZg5Q27PsT65d97
        
       | Apreche wrote:
       | If someone invoices me, and I don't pay the full amount in a
       | timely manner, what do you think will happen? Late fees, reports
       | to credit bureaus, collections agencies hounding me, maybe even
       | lawsuits?
       | 
       | If insurance companies underpay, doctors should treat that no
       | differently. Don't appeal through the insurance company itself.
       | Imagine I go to a store and pay less than the full amount at the
       | register, and then the grocery store appeals to ME to decide
       | whether I actually should have paid the correct amount. It's
       | absurd.
       | 
       | Doctors should treat the insurance companies like anyone else who
       | owes them money and isn't paying in full on time.
        
         | hn_go_brrrrr wrote:
         | I was thinking the same thing. Would it be permissible to bring
         | each underpayment to small claims court as a separate case? If
         | enough doctors did this, it would very quickly be a legal DDoS
         | attack, like we've seen happen with mandatory arbitration.
        
         | postflopclarity wrote:
         | good luck suing when lawyers cost the doctor 2k/hour and the
         | insurance companies have armies of in house counsel.
        
         | gwbas1c wrote:
         | Doctors have extensive contracts with insurance companies, and
         | often have employees dedicated to billing. I wouldn't make
         | assumptions here, other than "downcoding" is probably just
         | subtle enough to not be worth it to fight.
        
         | some_random wrote:
         | So what should happen when Docs lie about what procedures they
         | did? Because it happens quite frequently and for some reason is
         | always left out of these discussions.
        
           | Pet_Ant wrote:
           | Man, it's almost like healthcare and human lives shouldn't be
           | for profit...
        
             | pastor_williams wrote:
             | "It is not from the benevolence of the butcher, the brewer,
             | or the baker, that we expect our dinner, but from their
             | regard to their own interest."
        
               | jasonlotito wrote:
               | Exactly. Glad you agree it shouldn't be for profit,
               | either.
        
               | pastor_williams wrote:
               | I have no problem with it being for profit. The issue is
               | the alignment of interests and the thumb on the scales by
               | government and vested interests. If health insurance
               | worked like car insurance I think we'd be in a better
               | state.
        
               | kbelder wrote:
               | I wish health care worked like veterinary care. Except,
               | now, veterinary care is becoming more like human health
               | care, and it sucks.
        
               | nocoiner wrote:
               | Vets are really the most amazing doctors and I hate to
               | see what is happening to their industry. Hopefully in
               | exchange for dealing with the bullshit of human health
               | care, at least maybe the money is getting a little better
               | for them (a lot of them are just criminally underpaid).
        
             | philipallstar wrote:
             | Find some doctors, nurses, researchers, manufacturers etc
             | etc who will work for no money and we can remove money from
             | the problem.
        
               | jasonlotito wrote:
               | > Find some doctors, nurses, researchers, manufacturers
               | etc etc who will work for no money and we can remove
               | money from the problem.
               | 
               | Not being for profit doesn't mean you don't pay people.
               | 
               | Further, I wonder how the Sixth Amendment works then? So
               | many non-profit people working for... no money?
               | 
               | This "work for no money argument" is so incredibly weak,
               | I had to make sure I quoted the argument so the person
               | wouldn't change it.
        
               | philipallstar wrote:
               | Eventually everyone works for profit if they get paid.
               | Spending time only is pure profit in money.
        
               | iamnothere wrote:
               | A reasonable wage or salary isn't usually considered
               | "profit" in a legal sense. This is why nonprofits can
               | still pay employees. Any money that is left over after
               | costs (including wages/salaries) needs to be reinvested,
               | spent on the organizational mission, or held for future
               | use, not distributed through dividends or other
               | distributions as in a for-profit enterprise.
        
               | JumpCrisscross wrote:
               | > _reasonable wage or salary isn't usually considered
               | "profit" in a legal sense_
               | 
               | This is a semantic punt to the word "reasonable."
        
               | iamnothere wrote:
               | The IRS has some guidelines that they use to decide what
               | is "reasonable" but they don't give out whatever actual
               | formula or process they use to determine this. It's
               | supposed to be based on industry averages (more or less)
               | but in reality it's hard to determine what exactly that
               | means. Generally you are "safe" paying in an industry
               | average range, but if outside that range you need legal
               | and accounting support to back up your own assessment.
        
               | JumpCrisscross wrote:
               | > _you are "safe" paying in an industry average range,
               | but if outside that range you need legal and accounting
               | support to back up your own assessment_
               | 
               | What? The IRS doesn't regulate wages. They just care
               | about getting their money. If I pay you $10bn a year to
               | yell at my cat, the IRS is fine so long as I pay payroll
               | and you income taxes.
        
               | hibikir wrote:
               | Have you spent much time looking inside non profits? A
               | lot of hospitals in the US are non profits. Some are part
               | of non profit universities too. This in no way leads to
               | superior cost controls, or those universities being
               | cheap. What it does mean is that they get some
               | significant tax advantages (for instance, no property
               | taxes), and that there's fewer optimization incentives.
               | When you limit yourself to the US definition of a non
               | profit company, it doesn't make care better or cheaper.
        
               | OkayPhysicist wrote:
               | Most people do not profit off their labor. 2/3rds of
               | people are living paycheck to paycheck, which means that
               | they are being paid approximately the same amount that
               | their labor costs to produce. That makes their wages an
               | exchange of equal value, and thus not profitable.
        
             | some_random wrote:
             | You're welcome to come up with an alternative system of
             | aligning interests, so far all of the other ones have
             | failed horrifically.
        
               | sensanaty wrote:
               | I live in NL. I pay 130 euros a month for my health
               | insurance, and a max of 375 yearly on deductibles should
               | I accrue some costs. The only reason I pay 130 is because
               | I earn above a certain number, otherwise it's discounted
               | and even free at a certain level (and I opted into the
               | more expensive tier to also have dental coverage). In my
               | case, my employer even pays for my insurance so in
               | reality I don't even pay anything monthly (that's rare
               | here though).
               | 
               | I recently did an in-depth sleep study, got a CPAP
               | machine prescribed to me, free replacement filters and
               | replacement tubes + mask for it whenever I need them. I
               | also got xrays and CT scans because of a foot injury
               | around the same time. I also got comprehensive blood
               | tests done.
               | 
               | None of it cost me a penny other than the ~100 euros a
               | month, the doctors and GPs are paid well, the quality of
               | care I received was exceptional, and in the worst case
               | scenario possible I would've only paid 375 euros max.
               | 
               | My mother in law has osteoporosis and a number of other
               | chronic illnesses, so she has to see specialists quite
               | often. The quality of care she receives is similarly
               | excellent to the one I received, and due to her
               | disability her healthcare is partially covered as well.
               | 
               | It's not perfect of course, but it sure does beat all the
               | horror stories you often hear coming from across the pond
               | of people ending up in lifelong medical debt should, God
               | forbid, something happen to them that they realistically
               | have no control over. So I'm sorry, but I don't buy that
               | the for-profit fucked up system you guys have going on
               | over there is the best of the lot, especially if you're
               | an average Joe and not someone from SV earning obscene
               | amounts.
        
               | hibikir wrote:
               | "Healthcare that isn't for profit" doesn't mean just a
               | national health insurance. Just that as a random citizen
               | you are shielded from seeing all the same issues
               | underneath. The pharma companies, test providers,
               | equipment makers and personnel are all making profits. I
               | bet the total amount paid is higher that 130 euros a
               | month. There's profit all through the system, so claims
               | that healthcare should not be for profit are silly.
               | 
               | Now, what happens is that the profits have to be kept in
               | check, either via price controls or sufficient
               | competition. It's not hard to argue that the choices made
               | in the US are quite suboptimal, but it's far more of a
               | regulatory problem than purely a matter of people making
               | money. If nobody makes money, there's no healthcare.
        
               | lawlessone wrote:
               | > so far all of the other ones have failed horrifically.
               | 
               | Have they?
               | 
               | i live in neither country but i know i'd rather have
               | cancer in the UK than the US.
               | 
               | That Breaking Bad meme about Walter getting lung cancer
               | in the UK comes to mind.
        
               | hylaride wrote:
               | > so far all of the other ones have failed horrifically.
               | 
               | Uh, what? Other systems have their problems, but they're
               | varying levels of functional, and the health and life
               | expectancy of the populations in most other developed
               | countries is higher than the US, all the while spending a
               | fraction.
               | 
               | Most other developed countries have a mix of public and
               | private insurance and/or delivery, with the better run
               | systems being better rationalized in dealing with costs
               | and having an actual market where it makes sense to form
               | one (eg you can't practically shop around for ER care,
               | but you can for elective or planable services). The
               | French system is held in high regards in particular
               | (though it isn't really replicatable due to their unique
               | civil service setup).
        
         | lesuorac wrote:
         | Sure but imagine you hire a landscaper and they send you a $40
         | invoice for $20 of law cutting and $20 of leaf cleanup. You go
         | look outside and see a ton of leafs so you just send them $20.
         | 
         | That's the insurance companies' stance. The work you performed
         | is this and so our agreed upon rate is this.
        
           | bshep wrote:
           | but the landscaper has a photo of the clean yard after they
           | finished. They send it to you but you ( as the insurance
           | company) say they need to call a specific time and speak to
           | your 12y/o who is the yard representative of the house.
           | 
           | The 12 y/o say 'no you stink' and hangs up. Then you send the
           | landscaper a letter saying 'sorry your peer to peer was
           | denied'
           | 
           | ( I know this is exaggerating a bit and made to sound funny
           | but it mostly works like that in healthcare )
        
           | kstrauser wrote:
           | But in reality, the landscaper bills you for $100, you say
           | you're only going to pay $90, and then you write them a check
           | for $31.50.
           | 
           | (That's because you're a major, well-known insurer and pay an
           | industry high 35%. The guy who mows the Medicare yard might
           | pay 40 cents on the dollar. The person mowing the Medicaid
           | yard has to file 87 forms to get paid his $6.)
           | 
           | Source: I've co-owned doctors offices.
        
         | pragmatic wrote:
         | Insurers (payers in the industry lingo) simply don't pay or
         | underpay.
         | 
         | Proving this sucks bc smaller practices have horrible staff
         | turnover, the EMRs are dog shit and the contracts are who knows
         | where and in what format.
         | 
         | Recovery is beyond the scope of most small practices.
         | 
         | Its a nightmare where providers are often shorted millions of
         | dollars and that ends up coming out of the patient's pocket.
         | 
         | Everyone yammering about upcoding on this thread is blissfully
         | clueless.
        
           | kamarg wrote:
           | > Recovery is beyond the scope of most small practices.
           | 
           | Seems like a business opportunity. Could probably work very
           | similar to other collections agencies where they either buy
           | the debt for pennies on the dollar or take a percentage of
           | the collected amount.
        
             | datadrivenangel wrote:
             | Sending your patient's 'debt' to collections promptly is
             | very unpopular with the patients, and the insurance
             | companies will 100% insist that the patient is responsible.
        
             | brewdad wrote:
             | It's much easier to treat it like identity theft where the
             | business's problem becomes the customer's problem to solve.
             | In this case, insurance didn't pay what was required so the
             | patient does. There's already a potential collections
             | agency involved if the patient doesn't pay.
             | 
             | Who do you think is easier to squeeze the money from? A
             | mega-insurance corporation or your sick grandma?
        
             | toast0 wrote:
             | Yeah, there's an industry of companies that insert
             | themselves between the medical record and the insurance
             | company to upcode claims and get better payments. This
             | article is about the reverse process, where the insurance
             | company looks at the claims and downcodes them to send
             | worse payments.
             | 
             | IMHO, in office care should be more of a time and materials
             | billing than billing based on procedures done. Of course,
             | then the doctors' billing office would aggressively measure
             | time the doctor spent, and the insurance company would
             | suggest the doctor took too long for whatever.
        
             | lozenge wrote:
             | You'll notice the doctor's office in the article already
             | has a team of billing experts. But instead of working on
             | new claims, they are being forced to relitigate claims they
             | already submitted that weren't accepted.
        
         | spiffytech wrote:
         | Insurance companies hold tremendous leverage over care
         | providers, up to and including the power to effectively put
         | them out of business on a whim. Care providers don't like
         | picking fights with insurance companies.
        
           | tptacek wrote:
           | Care providers make massively, massively more money than
           | insurance providers.
        
             | aspenmayer wrote:
             | Care providers also likely spend much more time and labor
             | on making that money than the insurance providers spend
             | making their end, though I only have anecdotal evidence of
             | this through my involvement in healthcare providers'
             | practices as an MSP.
        
               | tptacek wrote:
               | It's $2.5Tn vs $0.3Tn. It's more than 8x more.
        
               | aspenmayer wrote:
               | That's one half of the proportion. What is the time/labor
               | spent?
        
         | bena wrote:
         | It's truly fucked up.
         | 
         | Most insurances won't publish their fee schedules. So doctors
         | don't know what they will pay. So what they do is bill insanely
         | high knowing the insurance will come back with "Nah, we only
         | cover $X". They'll collect $X, then write off the remainder.
         | Because the fear is not getting the maximum money possible. If
         | the doctor would bill $100 and the insurance pays up to $200,
         | then the doctor "lost" $100.
         | 
         | Regardless of how much it actually cost the doctor to provide
         | the service.
         | 
         | It's also why the "cash price" is usually much cheaper, because
         | it's closer to what it costs the doctor to provide the service.
        
           | hibikir wrote:
           | Ah, but this has also lead to many private practices getting
           | bought by hospital groups, at which point they have superior
           | pricing power. The doctor makes more money, and the insurance
           | company pays more, as it's harder to strongarm a company that
           | owns 8 hospitals than a 3 doctor practice. Either way, the
           | price goes up.
        
         | anigbrowl wrote:
         | I'm 90% certain that submitting claims to an insurer subjects
         | doctors to resolving any disputes via an appeal followed by an
         | arbitration process, and that the right to sue or handle the
         | debt in the regular way is severely attenuated.
        
       | kotaKat wrote:
       | Ah yes, this is a fight between the practices (sometimes not the
       | doctors!) upcoding their visits and the insurance companies
       | wanting to push back and downcode the visits to what they
       | actually entailed.
       | 
       | Healthcare practices want to maximize revenue and push up the
       | "level" of a doctors visit and they can do it with just adding
       | one or two extra little questionnaires or an extra test or two
       | that you might not pay attention to so they can get an extra
       | several hundred dollars a day for billing higher level cases
       | daily.
        
         | polski-g wrote:
         | There is immense pressure on insurance companies to lower
         | costs, as they get blamed for the "American health care
         | system". The only one on the side of the payer is the insurance
         | company, they're the only one who wants to keep costs down for
         | the consumer. Given the massive amounts of fraud in government
         | health insurance (medicare) it would of course be prevalent in
         | the private insurance market.
         | 
         | https://www.azcentral.com/story/news/local/arizona-health/20...
        
           | vjvjvjvjghv wrote:
           | " they're the only one who wants to keep costs down for the
           | consumer."
           | 
           | They don't. They want to increase profits by pushing more and
           | more cost to the patient while squeezing providers. The
           | patient is always the loser in this system. One reason is
           | that most patients don't even have a choice of insurance
           | because their employer picks the insurance that's best for
           | the employer.
        
             | polski-g wrote:
             | My employer switches insurance carriers every 4 years or so
             | because another carrier has a more competitive rate.
             | "What's best for the employer" is also what's best for me
             | -- I can walk across the street and get a new job if I
             | become unhappy. They want to keep their healthcare costs
             | down so they can keep my salary high as dollars lost to my
             | healthcare compensation are invisible to me.
        
               | datadrivenangel wrote:
               | Except that the insurance plans charge the employer and
               | so the cheaper plans mean more haggling and potentially
               | out of pocket for you later
        
           | Ancalagon wrote:
           | why dont other countries have similar amounts of healthcare
           | fraud in their single-payer systems?
        
         | arealaccount wrote:
         | I never understood why insurers get all the flack while the
         | providers get a pass.
        
           | cogman10 wrote:
           | Because the common interaction people have with their
           | insurers is "We are denying this because of <REASON>" which
           | they have to fight to get healthcare.
           | 
           | When a provider rips off an insurer it's invisible to the
           | general public.
           | 
           | Also, incidentally, when people talk about fraud in
           | Medicare/Medicaid, the providers are almost always where that
           | happens (yet that's often not pointed out).
        
           | walkabout wrote:
           | FWIW I hate most medical billing departments (and hospitals
           | are the worst) about as much as I hate insurance.
           | 
           | They're at least as likely to fuck something up (curiously,
           | always in their favor, not yours) as insurers, from what I've
           | seen. And they're almost as unpleasant to deal with--at least
           | they don't generally keep you on hold for literal hours, but
           | it's still not great.
           | 
           | And one of the ugliest public-facing roles in all of American
           | medicine has to be the insurance-vultures whose job is to
           | hover about emergency rooms pestering very-sick people for
           | their billing information. Fucking gross.
        
           | potato3732842 wrote:
           | Every party at every point in the system is various shades of
           | complicit in fleecing us. That's the magic of the system.
           | It's all divided up in so many ways and so many of the
           | feedback loops touch through the people getting screwed that
           | it's impossible to build a "these guys might not be wholly
           | responsible, but they're responsible enough things will get
           | better if we push them off a cliff or legislate them into
           | poverty or whatever" consensus you need to build to change
           | things
           | 
           | 17% of the US GDP is healthcare, now obviously there's a lot
           | of nurses and random courier drivers and all sorts of other
           | stuff in there, but they would all need to take some amount
           | of haircut for us to get fleeced less.
           | 
           | The GDP contribution of slavery was ~13% just preceding the
           | civil war and credible moves (i.e. electing Lincoln) to make
           | them take a haircut caused, you know, the civil war.
           | 
           | There is likely no "clean" way to fix this problem other than
           | a century long frog boiling exercise
        
             | nocoiner wrote:
             | You think nurses and couriers are the ones who need to take
             | pay cuts to get healthcare expenses under control??? Lm,
             | and I cannot stress this enough, fao.
        
           | unyttigfjelltol wrote:
           | Because it's only human nature to complain about the people
           | who _aren't_ in the room. Insurers are not only absent, they
           | are economically adverse to the two parties making decisions
           | in the room.
        
           | myko wrote:
           | In years of working in the medical industry it is rare for
           | health systems to purposefully upcode a patient's visit (this
           | is taken extremely seriously) while insurers attempting not
           | to pay the bill and sticking it to the patient and health
           | system is standard practice
        
       | daoboy wrote:
       | For what it's worth, this sort of gaming works both ways.
       | 
       | Many medical administrations do everything they can to upcode in
       | order to bill for more money.
       | 
       | The whole system is a mess.
        
         | nadermx wrote:
         | It's beyond our control, says only country where this happens
         | daily.
        
           | antonymoose wrote:
           | Pretty sure fraudulent billing practices exist in a variety
           | of nations and industries.
        
             | vjvjvjvjghv wrote:
             | Other countries are making efforts to keep things in check
             | though
             | https://www.npr.org/2025/01/04/nx-s1-5246231/potential-
             | fraud.... The US for some reason can't even address blatant
             | fraud. One example is the stuff insurers do with Medicare
             | Advantage. There is fraud and Congress knows about it but
             | besides some hearings nothing is happening.
        
             | jasonlotito wrote:
             | It does.
             | 
             | And having lived 10 years in Canada and 10 years in the US
             | and used both their healthcare systems quite a bit, I have
             | seen both sides. Let me just say I moved to the US for
             | healthcare 10 years ago and we do not regret it one bit.
             | The US is easy to point and laugh at, but that just comes
             | from ignorance.
        
               | acheron wrote:
               | But shitting on the US gets you lots of Internet upvotes,
               | and isn't that the important thing?
        
           | bluGill wrote:
           | IT is beyond our control because we have setup a system where
           | the people who are paying don't want to control things.
           | 
           | My boss wants insurance to be expensive - if I could afford
           | it I would be more willing to quit (retire early).
           | 
           | Finding cheaper services isn't in my interest - I'm not
           | paying any bills anyway.
           | 
           | Insurance companies like the complexity because it means I
           | can't understand the system and so I have to use them.
           | 
           | Doctors don't really care as they just have administrators
           | play the game for them. Once in a while they look at the game
           | and say something, but really this is just they don't
           | understand how the game is played (they shouldn't - they are
           | doctors, they should be looking at medical issues not
           | administrative ones).
        
             | potato3732842 wrote:
             | There's an old mechanics saying "if X was covered by
             | insurance it'd cost what Y does" where X is some routine
             | thing (tires/brakes/etc) and Y is autobody or glass
             | services typically covered by insurance.
             | 
             | This proverb seems to also apply to health insurance and
             | the things they do/don't cover.
             | 
             | Putting routine stuff under the purview of insurance is
             | stupid regardless of context. There are other cheaper,
             | faster, simpler and more transparent ways of doing that.
        
             | pastor_williams wrote:
             | Doctors have also spent a lot of time lobbying to make
             | becoming a doctor harder so that the fewer doctors will be
             | able to command better salaries. It sounds like they are
             | attempting to reverse that and open up more spots for
             | residencies but I imagine that there is a lot of momentum
             | to overcome.
        
       | pnathan wrote:
       | I wonder how this plays out with Kaiser and other integrated
       | practices.
        
         | breadwinner wrote:
         | They try to convince you that you're fine and don't need any
         | treatment.
        
       | gwbas1c wrote:
       | This doesn't surprise me: The "fee for service" system encourages
       | doctors to perform as many services as they can so they can bill
       | for more. I've certainly had my fair share of tests and
       | procedures where I wonder if the provider was just trying to find
       | something to bill for.
       | 
       | I'm also not surprised that some providers will try to figure out
       | which codes they can use to get the most revenue. ("Hey, if I do
       | procedure A instead of B, I get paid more, so why would I do B?")
       | 
       | That being said, I _also_ wouldn 't be surprised if many of these
       | turn into lawsuits, or ultimately push to revise the whole "fee
       | for service" system.
        
         | mbb70 wrote:
         | "Figure out which codes they can use to get the most revenue"
         | is a billion dollar industry with many players, subspecialties
         | and surprisingly few lawsuits.
        
           | mschuster91 wrote:
           | A lack of lawsuits can just be an off the record agreement
           | that _no one_ benefits from the entire mess being dragged in
           | front of the courts with public record laws, because _that_
           | is how you give future Luigis ideas.
           | 
           | The more shady the industry, the more everyone involved is
           | shying awaa from sunlight.
        
       | silexia wrote:
       | I went to the dentist a couple of weeks ago and had the shortest
       | dental visit I've had. They did the X-rays, then the dental
       | assistant spent five minutes cleaning my teeth and pronounced
       | them good. The dentist came in and looked for about one minute
       | and said they were fine. I was sent on my way.
       | 
       | They billed my insurance for over a thousand dollars.
        
       | eigencoder wrote:
       | My pediatrician _always_ charges us for an office visit +
       | preventative care when we go in for a preventative care visit. It
       | 's obviously to get more $$ from insurance. I feel like this goes
       | both ways...
        
         | throwawayqqq11 wrote:
         | An obligation to pay is always good for the billing side. Think
         | about the sociopathic prices of US pharmaceuticals.
         | 
         | Afaik any other country with mandatory health care also puts a
         | ceiling on prices. In germany, there is a price catalog for any
         | service, with only few exceptions, and doctors/hospitals cannot
         | legally charge anything else for these covered services. Now
         | guess what the US does not have, even thought obama had foreign
         | consultants explicitly advising for it.
         | 
         | Health ensureance companies are certainly not the most
         | altruistic but any profit oriented company trying to cut cost
         | where ever possible is hardly a supprise.
        
         | darth_avocado wrote:
         | Yeah enough gets talked about insurers acting in bad faith, but
         | let's not forget hospitals also acting in bad faith for their
         | end. Some personal examples:
         | 
         | 1. Sitting in a Urgent care. They get you in the exam room. You
         | sit there for 15 mins, doctor comes and sees you for 5 mins
         | (mostly rushes the exam), do a blood draw, ask me to sit around
         | while they run the test, doctor leaves, as soon as 45 mins are
         | over the nurse comes over to let me know it's taking longer to
         | run the test so I can go home and they'll call when the results
         | are out. A month later charge thousands of dollars to insurance
         | for a 45 min Urgent Care visit that doesn't cover the lab work.
         | 
         | 2. Go to PCP with cold symptoms that haven't cleared in 10
         | days. I insist it's a sinus infection, they send me back with
         | no antibiotics and ask to schedule and online appointment in 2
         | days. I insist I come in in person, but they schedule an online
         | appointment anyway. Nothing gets better and I see the doctor
         | online after 2 days, they say I'll have to come in so that they
         | can evaluate me in person and prescribe antibiotics. I go in
         | person, get antibiotics and get cured. Insurance gets charged
         | for 3 separate hour long visits ($750 each and none of them
         | lasted more than 10 mins).
        
       | 3D30497420 wrote:
       | This sort of thing gets to two critical problems of the American
       | system: 1. It is largely designed to make money, not actually
       | help patients. So every step in the healthcare chain that can
       | extract a bit of value will do so, largely to boost profits. 2.
       | Insane complexity with limited transparency. How much will
       | something cost? Hard to tell. Will it be covered? Who knows?
       | 
       | On the opacity, I have one informative anecdote. I had a single
       | blood test done awhile back and no one knew if insurance would
       | cover it, or which of the dozen or so billing codes it involved
       | (taking the sample, delivering the sample, testing the sample,
       | etc.) might be covered. It was an expensive test so I spent days
       | bouncing between the doctor's billing team and the insurance
       | company until the settled answer was: No one knows, do the test
       | and insurance will decide. So I did it and insurance denied
       | covering the doctor-recommended test. The salaries involved for
       | all the billing people (and my time) would have covered the cost
       | of the test. </rant>
        
         | hypeatei wrote:
         | > No one knows, do the test and insurance will decide
         | 
         | Oh, someone knew but the doctors office wanted to do the
         | expensive thing and get paid (either by you or the insurance)
         | 
         | Not saying the blood test was unnecessary but we have no idea
         | what communication happened between the doctor and insurance
         | company. Did they possibly recommend a less expensive test and
         | the doctor decided that'd make him less money so he went
         | forward anyway?
        
           | danaris wrote:
           | No, I assure you, it is _very_ common for doctors ' offices
           | not to know whether a particular procedure will be covered.
           | 
           | This is not just because of the capriciousness of insurance
           | adjusters, but because they have to deal with all the 273
           | different variations of insurance plans that people who come
           | through their offices might have.
           | 
           |  _In general_ , a doctor's primary goal will be to get you
           | good care.
           | 
           | An insurance company's _only_ goal nowadays is to make as
           | much money as possible for as little effort as possible.
        
             | hypeatei wrote:
             | > An insurance company's only goal nowadays is to make as
             | much money as possible
             | 
             | How can that be true when their profits are capped on
             | collected premiums? Look up the Medical Loss Ratio (MLR)
             | rule to see what I'm referring to. If you wanted to squeeze
             | money out of people, health insurance would be the least
             | appealing industry to do that in since you're required to
             | spend 80-85% of premiums on medical care.
        
               | lozenge wrote:
               | So increase the health care spending, then you can raise
               | premiums. An issue the ACA drafters already knew about,
               | and tried (and failed) to deal with.
        
               | lotsofpulp wrote:
               | The linked article is about insurers trying to reduce
               | spending by downcoding.
               | 
               | So which is it? Insurers unfairly denying reimbursement
               | for what should be valid claims, or insurers unfairly
               | increasing spending on claims so they can increase their
               | profits.
               | 
               | Also, go look at 5, 10, and 15 year returns for the big
               | insurers (UNH/Elevance/CVS/Cigna/Humana/Molina/Centene)
               | if you think health insurance is a good business for
               | earning money. Spoiler alert: they're less than
               | desirable, stick with SP500.
        
               | wat10000 wrote:
               | A 25% margin is pretty good, and companies aren't hitting
               | the limit currently.
        
           | lotsofpulp wrote:
           | Health insurance companies have told me, on the phone, that
           | they will not tell me the codes the doctor needs to charge
           | for preventative visits in order to for my visit to be
           | covered as preventative care (meaning I don't have to pay
           | anything).
           | 
           | However, I could tell the insurance customer service person a
           | code, then they could tell me if it was classified as a
           | covered preventative service.
           | 
           | So I, the insurance company's customer, Googled medical
           | procedure codes and found some on random PDFs, and checked
           | which ones were covered, and then I asked the doctor to
           | provide me the services for that code.
           | 
           | That is American healthcare.
           | 
           | On the flip side, I also had a doctor's office try to bill my
           | insurance $25 for towels used to wipe the ultrasound jelly
           | off my wife's belly. My insurance didn't pay, so the doctor's
           | office sent me the bill for what insurance didn't cover, so I
           | called the doctor's office and asked why I am being charged
           | $25 for the few pieces of paper towel (not even linen towel),
           | and the receptionist said they would waive the charge.
           | 
           | So, moral of the story is bring your own paper towel roll
           | when you expect to get messy at the doctor's office.
        
             | testing22321 wrote:
             | > _However, I could tell the insurance customer service
             | person a code, then they could tell me if it was classified
             | as a covered preventative service._
             | 
             | Malicious compliance engaged.
             | 
             | Start with code "1" and go to "99999999999999999" until
             | they tell you it's covered.
        
         | supportengineer wrote:
         | Here are the magic words in US Health Care: "What is the cash
         | price?"
         | 
         | It's usually less than you think and often worth avoiding the
         | insurance company hassle. Then you can just get reimbursed with
         | your FSA or HSA anyway.
        
           | i80and wrote:
           | FSAs are insane, conceptually.
           | 
           | "Guess how much money you're spending in a year on
           | healthcare! But beee caaareful: if you guess too high, YOU
           | LOSE IT"
           | 
           | I still used mine while I still had access to one, but it was
           | grumpy-making and was usually almost more trouble than it was
           | worth.
        
             | lotsofpulp wrote:
             | I don't understand why any decision maker in any business
             | in the USA chooses to offer their employees (and hence
             | themselves) health FSAs at all, especially when the much
             | superior in every way Fidelity HSA is available.
        
               | supportengineer wrote:
               | HSA requires a high deductible health plan, not everyone
               | could afford that deductible.
               | 
               | "To contribute to an HSA, you'll need to be enrolled in
               | an HSA-eligible health plan, also called a high-
               | deductible health plan (HDHP)."
        
               | xhrpost wrote:
               | Yup, I agree HSA is superior but depending on your
               | situation (and plans offered), the HDHP can be much more
               | expensive out of pocket[1], even if you're paying with
               | after tax dollars. Sweet spot I think is using a good low
               | deductible plan when it makes sense but having a spouse
               | with an HSA which both spouses can use for expenses.
               | 
               | [1]: or so it seems, I tried to figure this out earlier
               | in the year and the data is just lacking in order to make
               | a perfect decision.
        
               | delecti wrote:
               | HSAs are only available alongside high deductible plans
               | (HDHP), which aren't necessarily ideal in all situations.
               | FSAs are the only option like that if you don't have an
               | HDHP.
        
               | fnicfnac wrote:
               | What is the point of having a low deductible when you
               | could put the premium difference in a HSA and use it on
               | either the deductible or something uncovered?
        
               | hibikir wrote:
               | The math on whether you are ahead with the HSA or not is
               | non trivial, especially if you are married and neither
               | employer offers any subsidy when you put your spouse in
               | your plan. HSAs are often better, but it's a very
               | unfortunate math problem, where you carry quite a bit of
               | risk. The HSA contributions from your employer are often
               | nowhere near enough to make it win all the time. If your
               | employer's does, consider yourself lucky. On any given
               | open enrollment, my household has at least 30
               | combinations of healthcare plans to consider, and that's
               | ignoring dentals, visions and the like
        
               | lotsofpulp wrote:
               | Surely, that is offset by having to forfeit or waste any
               | FSA money not needed by the end of the year. It really
               | only makes sense if you have a minimum amount of
               | guaranteed healthcare expenses every year.
        
               | tpmoney wrote:
               | All the FSA money in your account is available
               | immediately at the beginning of the year. Ironically that
               | would make it a better choice for anyone with a lot of
               | medical expenses on an HDHP if it wasn't for the fact
               | that FSAs are capped by law.
               | 
               | As someone who does deal with enough medical stuff to
               | clear the deductible (and sometimes the OOP max) on their
               | normal health plan annually, it's still much more
               | convenient, again because the money is all there at the
               | beginning of the year when the expenses are highest
        
               | lotsofpulp wrote:
               | My HSA money is also available in the first pay period of
               | the calendar year. It's up to the employer to decide when
               | they want to contribute it.
        
               | tpmoney wrote:
               | That assumes your employer does any contributions to your
               | HSA. And if your employer is sticking you with an HDHP,
               | that's not always a given. Your own payroll deductions
               | are pay-as-you-go
        
             | toast0 wrote:
             | I lost some money, or at least had a hard time using it,
             | because I was quoted a price for something, set the FSA for
             | the next year based on that, and then the billing ended up
             | where only some of the price was eligible for FSA.
             | 
             | Combined with the PITA level, there's no way I'm doing it
             | again. I can't see how it's worth my time. One of these
             | three options is very likely:
             | 
             | a) my income level is low, so every dollar counts, but my
             | marginal tax rate is also low, so spending a ton of extra
             | time on this is not worth saving ~ 15% on taxes for health
             | care
             | 
             | b) my income level is high, so my marginal tax rate is
             | high, but saving 40% of taxes for health care is not worth
             | the time, because health care is not a meaningful amount of
             | income
             | 
             | c) my health care spending is high relative to income, and
             | I can deduct health care costs on my tax return. Then I can
             | deduct a lot more than the FSA will reimburse for, and the
             | records don't need to satisfy a third party, unless I'm
             | audited by the IRS.
        
             | pkaye wrote:
             | FSA does have the concept of rollover of up to $600 but its
             | up to the employer to decide. I imagine that full rollover
             | is not allowed because otherwise people would use the FSA
             | to defer some tax payments to end of year. But there are
             | ways they could have handled it better.
        
             | darth_avocado wrote:
             | It is a relatively easy fix tbh. You spend on medical bills
             | through the account like you do right now, but the way you
             | fund it is your post tax contributions. At the end of the
             | year the account sends you a statement of what you used and
             | you can use it to get the tax paid on the money back when
             | you file the taxes.
        
               | themafia wrote:
               | And if you're wrong on your medical expense paperwork it
               | could be a felony!
               | 
               | Why shouldn't the institutions that do this all day and
               | claim it as their special expertise handle all of this?
               | Why should I even be /capable/ of losing money due to my
               | lack of experience with the system?
               | 
               | The money is forfeited back to the employer. There should
               | be a law that money is now taxed and forwarded to the
               | employee in their regular payroll.
               | 
               | This system is designed to screw over regular consumers.
        
               | darth_avocado wrote:
               | Like I said, you don't have to do anything. It's would be
               | like your W2 as long as you use your account.
        
             | anonymars wrote:
             | Cue that tuba/horn motif from "The Price is Right" (famous
             | for "guess as close as you can without going over")
        
             | cblum wrote:
             | > FSAs are insane, conceptually.
             | 
             | Indeed. I don't understand why they cant just make medical
             | expenses tax-deductible up to a certain amount. The effect
             | would be the same. Why do I need a separate account for it,
             | and why do I have to guess how much I'll need every year
             | (as you pointed out)?
             | 
             | I guess at least part of the answer is that the companies
             | administering FSAs make money out of this system. Sigh.
        
           | ratelimitsteve wrote:
           | Pharmtech: "With your current insurance we can't sell you
           | this medicine at any price. We're under an agreement."
           | 
           | Me: "Okay, what if we don't go through insurance?"
           | 
           | Pharmtech: "$45 for the prescription."
           | 
           | Me: "That's a bit higher than last time."
           | 
           | Pharmtech: _performs some sort of incantation_ "Okay, $12."
           | 
           | Me: "How did we go from not at any price to $12?"
           | 
           | for those of you keeping score at home, the medicine was
           | generic colchicine which costs $.30/dose
           | (https://pmc.ncbi.nlm.nih.gov/articles/PMC7851728/), and I
           | was getting 12
        
             | salawat wrote:
             | Medicine not in formulary. Their clinical department
             | decided it was not worth covering for $reasons. The
             | Pharmacy, likely to be considered a preferred pharmacy,
             | signed a contract to be bound by that company's clinical
             | formulary for policyholders.
             | 
             | $45 was probably cash price, the they can let it go for if
             | they do their ordering through a pharmacy supply group.
             | 
             | $12 may be a price with a discount program like GoodRx
             | applied. Data changes hands behind the scenes to make the
             | lower price at the till possible. Don't know how GoodRx
             | works, but been around long enough to know you're probably
             | the product.
             | 
             | You'll be amazed the complexity of the pharmacy benefits
             | management complex.
             | 
             | t. Been there, seen it, tried to fix it best I could, left
             | in abject horror.
        
               | unyttigfjelltol wrote:
               | Turns out there are rational commercial players in these
               | markets if you just go all-cash. The price is abandoning
               | the incantations and local pharmacies, hospitals,
               | ignoring your insurance. Harder to do that with services,
               | but it's coming as well.
        
               | ceejayoz wrote:
               | It's deeply frustrating that the $12 doesn't go towards
               | the deductible. I just saved the insurer a bunch of
               | money!
        
               | salawat wrote:
               | You did nothing from their point of view except waive
               | having them cover the claim, thusly leaving more money on
               | their hands to be managed longer. Your "price discovery"
               | isn't something they aren't aware of. On the contrary,
               | their surveillance/clinical team have been crunching the
               | numbers and making unilateral decisions on how the
               | population is best guided to drugs based on their bottom
               | line benefit to the insurer.
               | 
               | You don't really factor into it except as an actuarial
               | data point. But you might have kicked off an overpayment
               | check back to the consumer in 12 months because golly
               | gee, those pesky regulations! Don't worry though, you can
               | hand it back because the premiums went up again!
        
             | rufus_foreman wrote:
             | There's an XKCD where the person who did the file download
             | dialog for Windows visits some friends,
             | https://xkcd.com/612/.
             | 
             | "I'm just outside town, so I should be there in fifteen
             | minutes...actually, it's looking more like six days...No,
             | wait, thirty seconds"
             | 
             | Sounds like that guy got a job setting prices for
             | prescription medicine.
        
           | andrewmcwatters wrote:
           | This is absolutely unacceptable when per employee healthcare
           | employer costs are basically now something like, I don't
           | know, 20,000-25,000 USD?
        
           | jimbokun wrote:
           | "What is the cash price?" magically puts you back in the land
           | of Classical Capitalism, where the service provider wants to
           | keep you as a customer and knows their internal costs and you
           | as a consumer of the service can evaluate their reputation
           | for quality and cost vs other providers.
           | 
           | It's adding 3rd parties like "insurance" (which only works as
           | insurance in very limited catastrophic circumstances) and
           | government plans that create the nightmare of the Mystery
           | Price Only Knowable After Service Has Been Rendered.
        
           | prasadjoglekar wrote:
           | Sorta. The reason to go thru insurance is to count the money
           | paid against your deductible. If you pay cash outside
           | insurance, it doesn't.
           | 
           | And if you have an HSA, you have a high deductible plan.
        
           | testing22321 wrote:
           | .... So you pay many thousands a year for insurance, but it's
           | easier not to use it?
           | 
           | Ummm
        
         | aduffy wrote:
         | I've had numerous encounters where doctors (and dentists)
         | attempt to charge me for services they've already been
         | reimbursed for from the insurance company.
         | 
         | It's only after hours of scouring my EOBs and being on the
         | phone with my insurance that I then come back to the practice's
         | office with evidence in hand, and they dismiss the charges.
         | 
         | I'm pretty sure this is just a racket because they expect most
         | people not to put up a fight and just pay, or get sent to
         | collections hell.
         | 
         | The amount of work you need to do as a patient in our health
         | system is so dumb.
        
         | alphazard wrote:
         | The biggest problem with the American system is that it's just
         | illegal for me to sell you good, simple insurance.
         | 
         | Let's say I draft an insurance contract that says for any
         | treatment if >5 of 10 randomly selected doctors agree that the
         | procedure was warranted, then I have to pay out the cost of the
         | procedure, no questions asked. This contract is less hassle,
         | clear, and doesn't require arguing with an insurance company
         | since it specifies how disputes are resolved.
         | 
         | But I'm not going to give it to you for free. I need to know
         | the expected payout in order to come up with a price and sell
         | it to you. You know, like how all other insurance works. There
         | is a price that is positive EV for me, but better aligns with
         | your risk tolerance, and is therefore positive utility for you
         | as well. In America, pricing it is illegal. I cannot, by my own
         | methods, determine a fair price and sell it to you.
         | 
         | That's why we can't have nice things, because it's illegal for
         | two people to agree on a price and terms and create a good deal
         | for themselves.
        
         | wisty wrote:
         | I disagree with the language you use.
         | 
         | It was not designed to make money. It was designed to cost
         | less, in the same way the USSR was designed to make workers
         | rich - it simply failed spectacularly.
         | 
         | Neoliberals dislike both regulation and public ownership, but
         | made a Faustian bargain where they replaced public ownership
         | with more regulation, thinking that regulation was the lessor
         | of the two evils. In reality, it's not - like in the USSR where
         | they had corporatised but heavily regulated "companies". A
         | heavily regulated company doesn't make money by offering better
         | value to customers, it makes money by finding loopholes in
         | regulations, and regulators will always lose the cat and mouse
         | game of closing these loopholes.
         | 
         | Neoliberals end up creating a system that's actually a lot like
         | the USSR (if the famous "Well intentioned Commissaire" essay is
         | representative of the USSR) - heavy regulations, with corporate
         | entities outsmarting the regulators to enrich their owners (or
         | managers) while minimising the value they create. Neoliberals
         | deny the need for pubic management, but are forced to badly
         | reinvent it (via heavy regulation). Communists deny the need
         | for incentives, and are forced to badly reinvent it (once again
         | via regulation), ending up not a million miles away from where
         | neoliberals end up - with endless regulation and lost
         | efficiency.
         | 
         | It's worth noting that the US spends far more tax dollars (per
         | capita) than Australia on health (Australia has a hybrid public
         | / private model). Medicare, Medicaid and the VA costs about as
         | much as Canada's expensive public system (per capita) since the
         | US is so insanely inefficient.
         | 
         | (edit: The essay I mentioned -
         | https://highered.blogspot.com/2009/01/well-intentioned-
         | commi...)
        
         | potatoicecoffee wrote:
         | In Australia I just take my blood test form to any pathology
         | place and they do it for free (for me) and bill the government
         | a set price from the medicare benefits schedule.
        
       | djoldman wrote:
       | We'll never know, but:
       | 
       | I wonder what would happen if we moved the "medically necessary"
       | requirement burden of proof from the doctor/patient to the
       | insurer. So the insurer would be required to pay out a claim
       | regardless of whether the insurer thought it was medically
       | necessary, but their recourse could be to try to claw it back
       | post-payment.
        
         | _boffin_ wrote:
         | Are you talking overnight? If so, that's an easy predictable
         | outcome.
        
         | hypeatei wrote:
         | They'd most likely go bankrupt. There is already an incentive
         | for them to spend on medical care due to the Medical Loss Ratio
         | (MLR) which caps their profits on collected premiums.
         | 
         | If you're saying they need to be forced to pay whatever invoice
         | comes to them _and_ start legal battles for each suspect case
         | then yeah... that doesn 't seem feasible.
        
           | djoldman wrote:
           | Health insurance companies are not immediately insolvent
           | because they
           | 
           | 1. pay out claims slowly
           | 
           | and/or
           | 
           | 2. deny or downcode claims outright?
           | 
           | Really? That to me would imply that doctors/patients are
           | submitting a huge amount of incorrect claims.
        
             | hypeatei wrote:
             | Doctors/patients are human too and your proposed system
             | would be ripe for abuse. If you're well versed in
             | submitting claims, and you know they _have to_ pay out,
             | then you could inundate them with fraudulent ones.
             | 
             | > That to me would imply that doctors/patients are
             | submitting a huge amount of incorrect claims
             | 
             | UnitedHealthcare says that 10% of claims go through
             | additional review for various reasons[0].
             | 
             | I don't know if there are stats for the industry as a
             | whole, but my guess is that they deal with a lot of errors.
             | 
             | 0: https://www.uhc.com/news-articles/newsroom/how-many-
             | claims-a...
        
               | djoldman wrote:
               | I'm not proposing that all guardrail responsibilities be
               | shifted to the insurer. Just the "medically necessary"
               | provision.
               | 
               | Doctors would still have a Duty to Code Services
               | Accurately and a Duty to Maintain the Medical Record
               | (which would clearly enable an insurer to prove a non-
               | medically necessary therapies). There would be plenty
               | plenty of evidence for an insurer to immediately respond.
               | 
               | So claims could be rejected on the basis of failing to
               | code accurately or lack of record.
        
       | renewiltord wrote:
       | People get annoyed at insurers who will deny treatment but most
       | of the time you can just pay it yourself. The government has
       | decided that everyone should pay for health insurance but you'll
       | never be denied care if you pay for it yourself.
       | 
       | So if you think you do require some care, just ask the medical
       | practice whether they accept self-pay and then you can decide if
       | it's worth paying or not. If you think it's not, it's unlikely
       | someone else will if they have to pay on your behalf.
       | 
       | Essentially, place yourself in the role of each participant:
       | 
       | - patient: wants to maximize care, money no object since it isn't
       | theirs
       | 
       | - medical practice: wants to maximize money spent on care
       | 
       | - insurer: wants to minimize money spent on care
       | 
       | Normally, the first two would be happy to collude to charge the
       | third any amount of money since they'd both get what they want.
       | And that is indeed what happens. So you get the natural result
       | that the insurer doesn't want to support certain payments even if
       | they were kind and pure-hearted. That they don't want to when
       | they're neither should then not be a surprise.
       | 
       | You can remove that pressure by turning the interaction into:
       | 
       | - patient: wants to maximize care with minimized cost
       | 
       | - practice: wants to minimize care with maximized cost
       | 
       | The pressures between the two parties are now opposite and you
       | can find the market equilibrium. With this opposition you'll
       | suddenly find that patients start complaining about doctors
       | ordering unnecessary procedures and so on, just like insurers
       | claim in the other model.
       | 
       | You can also work through with the other versions to model where
       | equilibrium will set in and see if it's where it does. Most of
       | the time you don't need to assume any moral valence for the
       | participants. They might as well be machines. It is their roles
       | that determine how they act, not their personalities.
        
         | elwebmaster wrote:
         | How about this one:
         | 
         | - patient: wants to maximize care, money no object since it
         | isn't theirs
         | 
         | - medical practice: wants minimize care since money is based on
         | number of patients not care
         | 
         | - insurer (government): wants to minimize money spent on care
         | while maximizing care because money comes from healthy citizens
         | who pay taxes
        
           | renewiltord wrote:
           | There are two differently behaving conforming things in
           | reality of these I think. Both Medicare and the UK/CA NHS in
           | my knowledge conform to your description.
           | 
           | In Medicare, this incentivizes maximizing patients on
           | 'recurring revenue procedures' like dialysis.
           | 
           | In the UK NHS (which I know better), it leads to the
           | government denying certain kinds of care depending on the
           | Adjusted QALYs / pound spent that the intervention will
           | provide.
           | 
           | TANSTAAFL after all, but yes, perhaps the interesting thing
           | about the government being in that model is that patients can
           | control government in a way that they cannot control
           | insurance companies (i.e. they're not strictly oppositional)
           | and consequently when the insurer is the government you get
           | spend-bias in the direction of who has government power. In
           | the US, that turns out to be old people. Additionally,
           | governments have non-health-related sources of revenue so a
           | government health plan can be used as a redistribution
           | mechanism.
           | 
           | But I think it leads to these outcomes predictably with a
           | splitter placed on how much control the government exerts
           | over the practice and how much control the patients exert on
           | the government.
        
         | atomicnumber3 wrote:
         | >So if you think you do require some care, just ask the medical
         | practice whether they accept self-pay and then you can decide
         | if it's worth paying or not. If you think it's not, it's
         | unlikely someone else will if they have to pay on your behalf.
         | 
         | Ok, hear me out for a minute.
         | 
         | What if I wanted to pool with several people, so that if any of
         | us had unexpected medical needs, it wouldn't bankrupt any of
         | us. Knowing that most of us would not need it.
         | 
         | And then, since we're all on the hook for each other's general
         | health, we also agreed to share the cost of preventative care,
         | because it was literally cheaper for us to all pay for
         | preventative care than to try to just solo it and then hit the
         | group with the cost of terminal cancer care instead of catching
         | it early and doing a small excision. (and other such examples.)
         | 
         | And then what if we made the pool HUGE, to even further spread
         | out the costs?
         | 
         | Sure wish there was a system that just did that, without trying
         | to also generate insane profits off it.
        
           | lingrush4 wrote:
           | There's nothing stopping you from starting your own non-
           | profit health insurance company. If greedy health insurance
           | companies are really the root of the problem, you should be
           | able to out-compete them fairly easily.
        
           | xeromal wrote:
           | That assumes the humans will do their best to take care of
           | themselves but given the ability they will be bailed out,
           | they let their health go knowing they don't need to actively
           | take care of themselves.
           | 
           | The outliers drain the coffers
        
           | fph wrote:
           | Aren't these basically mutual healthcare providers? We have
           | them in Europe.
        
           | renewiltord wrote:
           | Yes, you can do that. HealthPartners[0] is such a consumer-
           | governed non-profit. It is entirely opt-in. It is not illegal
           | in America to do that and, as you can see, others have done
           | that.
           | 
           | In HealthPartners' case, they do deny claims despite having
           | the structure you mentioned. I think if you wanted to run
           | such a pooled insurance company that advertised that it would
           | pay any and all claims made to it and would deny precisely
           | zero claims, you could and you would find it very easy to
           | onboard both patients and providers to it, at least so long
           | as its fund was solvent.
           | 
           | 0: https://en.wikipedia.org/wiki/HealthPartners
        
           | ChadNauseam wrote:
           | > Sure wish there was a system that just did that, without
           | trying to also generate insane profits off it.
           | 
           | Health insurance companies in the US must pay 80% of premiums
           | to providers. All their overhead (e.g. their accountants and
           | actuaries and so on) comes out of the remaining 20%. What's
           | left is their profit. People have this fantasy that all the
           | money we spend on healthcare is secretly going to greedy
           | insurance companies while doctors struggle to get by. But
           | insurance company profits are a drop in the bucket.
           | 
           | The real villains are the doctors who recommend expensive
           | MRIs and act like it's a complete surprise that the bill they
           | give you is so high. And then go lobby the government to
           | limit their competition. I would love to have a doctor in
           | france look over my radiology and tell me if I have cancer.
           | But that's illegal, I need to hire an American.
           | Coincidentally, the average radiologist in San Francisco
           | makes $660,000/year (about $400/hour).
        
         | breadwinner wrote:
         | The problem is that patients are usually not in a position to
         | determine if the care the doctor says is needed is really
         | needed or not. This is the same as taking your out-of-warranty
         | car to the mechanic. How do you know if the mechanic is telling
         | the truth?
         | 
         | Still, this would be better than the current system. Even when
         | you don't know if the doctor is telling the truth you can go by
         | their reputation for telling the truth. Reputations will matter
         | more, and doctors will care about maintaining their reputations
         | in their community.
        
         | themafia wrote:
         | > but you'll never be denied care if you pay for it yourself.
         | 
         | If you can pay. You're still required to have insurance
         | anyways. Which is a regressive tax and harms the people most in
         | need of these services. It's a cruel joke.
         | 
         | Those living paycheck to paycheck are screaming at you right
         | now.
        
         | mylifeandtimes wrote:
         | yup. So if you decide you want to have a child, you just get
         | ready to fork out 40-80K for the birth.
         | 
         | Because anyone can afford that, right?
         | 
         | Oh, and by the way, if you are in Texas abortion is illegal. In
         | case you didn't actually __decide__ to get (yourself, your
         | partner) pregnant.
         | 
         | So it's either 40-80K or 40 years. Easy choice.
        
       | standardUser wrote:
       | It's a system that supports two set of clients, doctors and
       | patients, and fails them both. Yet, Congress has considered it
       | sacred and infallible for a hundred years. Democrat's most
       | earnest attempt ended up strengthening and expanding that system,
       | and Republicans for their part have fought tooth and nail to
       | stack the system even further against the people it's supposed to
       | serve.
        
         | themafia wrote:
         | Congress has considered that the employees of this industry are
         | wealthy enough to contribute generously and often to their "re-
         | election campaigns." They couldn't care less if your medical
         | bills bankrupt you or not.
        
         | hibikir wrote:
         | This would all be well and good if the doctors weren't also
         | profiteering. When you visit one, you still don't know if their
         | recommendations are good for me or for them. I have seen
         | allergists which are no less slimy than used car salesmen. See
         | also studies on dentists and their varied recommendations for
         | the same patient.
         | 
         | The US insurance system doesn't seem to be giving us low
         | prices, but let's not pretend it's all their fault. It's just a
         | complex market where it's hard to compare providers, and
         | therefore is prone to a lot of inefficiency.
        
       | dboreham wrote:
       | People who have always lived in the USA have no idea how many
       | things about life in the USA are batshit crazy. This is probably
       | the top of the list. At least before we turned to fascism...
        
       | ratelimitsteve wrote:
       | the health insurance industry needs to be razed to the ground and
       | rebuilt from scratch. there's no saving something that is
       | ostensibly designed to help people get healthcare but
       | realistically denies them what they're entitled to for years (in
       | some cases, they just try to keep the ball in the air until the
       | patient dies, then there's no one to appeal) and then once the
       | care is approved steals from the service provider by
       | automatically altering the bills without any evidence of fraud or
       | theft.
        
       | doormatt wrote:
       | >Wagner's office estimates he lost over $3,000 to downcoding in
       | the first half of the year, but other doctors across the country
       | have fared far worse.
       | 
       | That's...not a lot of money.
        
         | stackskipton wrote:
         | Doctors are probably raising alarms over growing practice. It's
         | 3000 this year, but becomes 10000 next year and 50000 the year
         | after.
        
           | MattGrommes wrote:
           | Yep. Frog, boiling water, etc.
           | 
           | If they get away with it for a few offices and a little
           | money, it just becomes how they do business and grows.
        
       | costcopizza wrote:
       | What, if any, alternative framework other than single payer could
       | be put into place instead of our current hellscape?
       | 
       | Have health sharing plans been successful? Those require a
       | religious affiliation IIRC.
       | 
       | I exclude single payer solely because it's impossible with our
       | current leadership.
       | 
       | I'm surprised there isn't a Costco like medical group that's
       | nationwide, has a membership, and works solely to provide care
       | efficiently.
        
         | Taikonerd wrote:
         | The real problem is the billing model we have, where every
         | individual act a clinician performs is separately billable...
         | and separately haggle-able.
         | 
         | One model that has shown promise is "bundled payments." For
         | example, imagine that a certain insurance company switches to a
         | bundled model for childbirth. They say, "we will pay a hospital
         | $X to cover everything related to this patient's childbirth.
         | Maybe it will be a very simple birth and the hospital will make
         | a lot of money on it. Maybe it will be more complex/expensive,
         | and the hospital will make less money. In some rare cases, the
         | hospital will actually _lose_ money. "
         | 
         | Why is this a better model? Well, 2 reasons:
         | 
         | 1. the hospital has an incentive to provide care _efficiently_
         | , rather than trying to churn out as many procedures as
         | possible so they can bill more
         | 
         | 2. there's just fewer numbers for providers and payers to
         | haggle over
        
         | 827a wrote:
         | Where I live, we have three major hospital chains. Imagine one
         | of them is Kaiser Permanente. My primary care is through
         | Kaiser. When I needed to see a podiatrist to get a toenail
         | removed, they were through Kaiser. When I went to an ER a few
         | years ago for some abdominal pain, it was a Kaiser ER.
         | 
         | It is _beyond_ me why my employer is paying an insurance
         | company anything at this point. Kaiser should be selling me an
         | annual plan where everything at Kaiser is covered, maybe up to
         | a point, and then they have insurance-like network
         | relationships with e.g. other ERs in the area, if you need
         | them, plus out-of-area addons for when I 'm traveling.
         | 
         | This is, fundamentally, in Kaiser's interest to sell (again, I
         | don't live near Kaiser Permanente, I'm just using them as an
         | example; every population center has networks of healthcare
         | providers like this). They hate dealing with insurance as much
         | as their patients do. But only recently have these healthcare
         | mega-conglomerates achieved so much monopolistic integration
         | that they could actually do this and people would be
         | interested.
         | 
         | Also, interestingly: My dentist does not accept insurance;
         | direct pay. My eye doctor also does not accept insurance. This
         | is also a new thing; it wasn't long ago that I recall them
         | actually asking for it, but nowadays they just bill directly.
         | It hasn't gotten more expensive (beyond the fact that my
         | employer is paying for useless dental and vision insurance, but
         | at least those are only like $1-$4/paycheck).
         | 
         | Idk, my point is, I think things are changing and will continue
         | to change faster than you might think. I'd love to see
         | government-ran single-payer, but even admitting that is very
         | unlikely to happen on the near term, there's just so much
         | excess, waste, and bureaucracy in the medical system that some
         | kind of short-circuiting direct-to-consumer play, by someone,
         | will happen. Once a major healthcare provider chain can prove
         | that this D2C model works (and it _would_ work), the dominoes
         | will fall.
        
         | cmdli wrote:
         | > I'm surprised there isn't a Costco like medical group that's
         | nationwide, has a membership, and works solely to provide care
         | efficiently.
         | 
         | What you are describing is an HMO, which hasn't had that much
         | lower costs historically. Theoretically, you pay once and then
         | they take care of you, but in practice costs haven't been that
         | much lower.
        
       | viktorcode wrote:
       | The author lost me in the first sentence calling Deutsche Bahn a
       | well-liked company. I don't know which planet they are from.
        
       | immibis wrote:
       | > More than half of societal work is pointless, both large parts
       | of some jobs and five types of entirely pointless jobs:
       | 
       | > Flunkies, ...
       | 
       | > Goons, who act to harm or deceive others on behalf of their
       | employer, or to prevent other goons from doing so, e.g.,
       | lobbyists, corporate lawyers, telemarketers, public relations
       | specialists; <-- YOU ARE HERE
       | 
       | > Duct tapers, ...
       | 
       | > Box tickers, ...
       | 
       | > Taskmasters ...
        
       | greenchair wrote:
       | It's pretty obvious to everyone that doctors have been abusing
       | these levels. See doc for 20 minutes for a low complexity item
       | but get charged for a 30 minute medium complexity. The insurance
       | companies aren't blind. They've got the stats in hand for each
       | doctor. I mean some of the ranking data is already built into the
       | portal tools they give consumers for finding a doc.
        
         | remus wrote:
         | It's a huge system with a lot of people involved so no doubt
         | there is abuse, but there is also natural and expected levels
         | of variation in the complexity of patients that doctors doing
         | notionally the same job will actually encounter. If you're
         | doing an honest job and happened to have seen more complex
         | patients than average I think you'd rightly be pretty angry if
         | you were then forced to do more paperwork to justify yourself
         | to an insurance company who starts downcoding your patients.
        
       | m101 wrote:
       | For those looking for a fix to US healthcare I think it's
       | something like this:
       | 
       | - (user incentive to reduce cost) insurance is structured as co-
       | pay of [20+]% on all expenses, no exceptions
       | 
       | - (price transparency) require healthcare providers to quote
       | upfront for care, via API/website/phone/in-person. Price paid by
       | anyone is the same except for expenses related to billing. E.g
       | 
       | https://surgerycenterok.com/
       | 
       | - (create competition) enable creation of small scale clinics,
       | testing facilities, and laboratories
       | 
       | And for God's sake, get the government out of it!!
       | 
       | One (social) system that may work well is the South Korean one:
       | private provision of healthcare services; government run
       | insurance scheme with mandatory payments by those that can afford
       | to pay
       | 
       | https://en.wikipedia.org/wiki/Healthcare_in_South_Korea
       | 
       | I love markets, but health insurance really is a tough one given
       | the govt can't seem to let people make their own mistakes on
       | healthcare, so I think it might make sense to make it govt run.
       | 
       | Edit: the thing to acknowledge here is that it probably won't
       | push the frontier of healthcare as much as the current US system
       | does, but at least it would be high quality and affordable (not
       | people's largest or second largest expense item).
        
       | senderista wrote:
       | As long as providers have an incentive to overtreat and
       | overcharge, I don't see how we can control costs without an
       | adversarial system, as infuriating and dysfunctional as it is. I
       | never had to deal with any of this while enrolled in a nonprofit
       | HMO (there must be some internal adversarial dynamics there,
       | though).
        
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