Hospitals are one of the few businesses with absolute lack of transparency over billing.
I believe that hospitals largely try to recoup expenses they have to bear to treat people without health insurance. Imagine if you could only find out that the toothpaste you picked up at Walgreens actually costs $500 and you are forced to buy it before learning the cost. And you will also get an expensive $200 toothbrush at checkout to boot, with no input on whether it was needed. This is because there have been lots of lootings at Walgreens and they need to make up for losses by charging you extra.
Let’s reform all of this.
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The healthcare system should be driven by market forces. Go online and accept all lab tests recommended by your doctor after seeing the cost of each. Deselect tests that you believe are too expensive. A centralized portal will be the equivalent of a google shopping comparison channel that lets you see how much different providers charge for the same test or office visit…you will see how price will drop, SO QUICKLY!!!
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Pricing transparency and upfront payments by patients will lower costs for providers by eliminating beurocratic costs of dealing with insurance companies
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The system should let patients cover most expenses and doctor visits out of pocket without insurance.
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Hospitals should disclose upfront packages for all kinds of surgeries.
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The government should add a sale tax on all healthcare expenses collectively paid out of pocket to fund a collective reserve for catastrophic expenses and certain serious diseases that signficantly shorten lifespan. Given a confirmed diagnosis of a serious lifelong conditions, a certain sum should be allocated from this reserved fund to health savings accounts held by individuals. These sums should reflect the typical cost to manage their condition. Money is theirs to keep if they don’t spend it in its entirety. This model will encourage patients to minimize healthcare costs and reward the most efficient health providers. E.g. a cancer diagnosis would trigger funding every year, as long as that diagnosis remains present.