My Discount Beats Your Discount!

Plan sponsors are probably the most confused group of people in the history of mankind. Every health insurance salesman that comes in the door says the same thing, “My discounts are the best!”

Below is an example that clearly illustrates how savvy insurance salesmen and their PPO partners spin their deception. There is no better feeling than to know one is saving 60% off the same bill others only save 45%!
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1. 45% discount on $100,000 billed charge produces savings of $45,000 equaling a 45% discount
          
          – $100,000 in Submitted Charges
          – Discount Savings of $45,000
          – 45% Discount Percentage
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2. Same $100,000 billed charge produces identical savings of $45,000 equaling a 60% discount
          – $100,000 in Submitted Charges
          – $10,000 in Ineligible Charges
          – $15,000 in patient’s deductible & out-of-pocket costs
          – $75,000 in Eligible Charges
          – $45,000 in Discount Savings
          – 60% Discount Percentage
Of course, always watch out for further deception. It involves the letter “F”……………………discount OF or discount OFF.

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