A quick look at my health insurance claims revealed that the combined cost of my brief ER/ICU visit was almost $12,000. I have no idea whether this is competitively priced in comparison to other hospitals, but it doesn’t really matter. I wasn’t in any condition to shop around for the best deal. But I’ve had cost containment on the brain after attending a health reform conference for the last couple days and listening to a very smart MIT economist talk about the the issue. As illustrated in my own case, free market principles don’t work very well when it comes to health care. I didn’t have the luxury of time to compare prices for an ICU stay and even if I did, I would have no idea what a fair price would be. More importantly, I’m shielded from price considerations because every hospital has already struck a side deal with my insurer.
The Affordable Care Act contains several provisions to encourage bundling of services and paying for effective treatments, but it’s going to take a lot more work to arrive at a day when health care services are reasonably and transparently priced.
You’ve got a mind-reader, it seems:
Demystifying the Emergency Room Bill (NY Times)
http://www.nytimes.com/2010/08/07/health/07patients.html
“Emergency room bills are notoriously high and perplexing; patients often are left feeling like captives who have few alternatives. It is impossible to know how much the services will cost when you walk in the door. The hospital bill, which arrives weeks later, may include seemingly inflated charges for things like Tylenol or an M.R.I. Doctors who treated you may send their own separate bills, further complicating the payment process.”