Difference Between Negotiated Price and List Price
Posted Apr 06 2009 11:15pm
One excellent reason to purchase health insurance
is so that you do not have to pay full price (list) for services. When
you have health insurance, you get the discounted (negotiated) price for services
that the insurer has negotiated with the health care provider. If
you don’t have insurance, then you are on your own to negotiate a price with the health
care provider – and you should definitely ask the provider for a discount.
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Insurers and health care providers consider t
the “negotiated prices” proprietary information that they don’t want this price publicized. These
negotiated prices are what insured consumers are expected to pay for services, but
they are kept a secret and it’s difficult, if not impossible, to find out what these
prices are until after you have visited the provider.
From what I have heard, Blue Cross Blue Shield
negotiates the best discounts from provider list prices. Where
BCBS negotiates 60% off list, other insurers negotiate 40% off list. Knowing
this can help consumers make informed decisions when purchasing health insurance.
Office visit list price: $100
BCBS negotiated price for office visit: $
Other insurer negotiated price for visit: $
It’s also very interesting that a provider can have
up to 100 different prices for the exact same service, one for each type of insurance
they accept. Most price differences have
more to do with a doctor’s negotiation power than with the quality of care from the
provider. Wouldn’t it be nice to know
up front what providers offer the best value?