Econ/Bus/Insurance 101 question

[naomi 343]

Maybe not even 101

 

Just had a root canal and temporary filling put in that cost $1,347, $293 to me. The cost is doable, I just hadn't thought about it and maybe would have guessed $600 total if I'd given it thought.

 

30 years ago would that have been less (adjusting for inflation), because it was before insurance became the status quo? Explain that..

[Patriotsfatboy1 1,432]

I could walk upstairs and ask my wife who is a hygienist. However, I can almost guarantee you that it cost less is present day dollars. Health/dental insurance rates are higher and malpractice costs are higher.

[naomi 343]

I only barely understand the cause and effect of how operating with insurance, in general, makes things less affordable. It costs the dentist more to protect himself, and that gets passed onto the patient.

 

But the impact of lawsuits aside, if most people either paid out of pocket or were in payment agreements between the service and themselves, would costs come down?

 

I don't know if this was overstated or simplified (likely), but Ron Paul (used to be an obstetrician) explained that there used to be more charity hospitals. America's indigent weren't legitimately neglecting their health until healthcare became more regulated. The average person paid out of pocket far more often but even in comparison to what it takes to absorb insurance-subsidized costs today, it was more manageable. A freer market combined with a volitionally compassionate society worked better.

[SenatorRock 708]

I don't really know the why, but 99% of the time if you offer a provider cash you will get a discount on the "price" charged to insurance companies.

[TimmySmith 2,782]

My dentist charges less to insured patients because he has to.