Insurance companies have contracts with medical providers and institutions. The contracts state that between the patient and the insurance carrier the total amount paid to the hospital is only a percentage of the total cost. The insurance companies have gotten so large that they have bullied providers and hospitals into accepting the contractual agreements and the discount that they are given is very large. So large that the hospital cannot function with that level of mass discount so the providers have raised the original cost drastically to recoup costs. Therefore when your insurance denies something, instead of being billed a reasonable amount for the procedure you are billed the “full” amount which has been falsely inflated.
Insurance providers should not dictate which medical professional I chose and they should not be able to continue this practice that drives prices up for everyone, even uninsured. Without these contractual agreements, the cost of healthcare would not be so detrimental to the American people regardless of insurance status or coverage. Reevaluate pricing at facilities and ban contractual agreements.