By Ge Bai – Contributor – I am a professor of accounting and health policy at Johns Hopkins.
Why Are Cash Prices Lower Than Health Insurance Negotiated Prices?
Apr 21, 2024
Growing evidence demonstrates a counterintuitive phenomenon in healthcare: the cash price is often cheaper than insurance prices for the same service or product. Cash prices are unilaterally determined by a provider, while insurance prices are bilaterally negotiated between a provider and an insurance company. Don’t insurance companies presumably possess more bargaining power than individual patients?
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