If you want some insight into why we need a single payer healthcare system in the U.S.A. read this recently published article in the New York Times:
Those Indecipherable Medical Bills? They’re One Reason Health Care Costs So Much.
The person who wrote that article has at best a very basic understanding of health care reimbursement, and sensationalizes and indicts the healthcare coding system when it in fact is not the driver for increased healthcare costs. The real reason why that person received such ridiculous bills is because the physicians the hospitals she stayed at had an absurd cost basis for their services. This is a negotiating tactic with insurance companies. If a physician says that he is worth $5000 per RVU, the insurance company can negotiate with him for a rate of $500 per RVU. This makes the insurance company look good to their customers ("Look at the cost savings! $4500 saved"), and the physician still has plenty of wiggle room to negotiate his contract. This is also a benefit for the physician when he bills for medicare patients as a NPP. There are a LOT of technical details in healthcare billing. But, the downside to that situation is if you don't have insurance, he will initially charge you for whatever absurd amount he wants. Of course, virtually everyone qualifies for some type of insurance or assistance program, which limits fees. And those who don't usually are able to negotiate with the provider or have their debts forgiven (this is a tax write off for providers, absurdly).
But getting back to this example, this is a very odd case. Most providers use a standard between 2 and 2.5 multiplier based on Medicare's physician payment system rate for their standard pricing. It certainly makes the news look scary when someone uses a different rate, though. The second allusion was that physicians can game the system by doing things like taking the patient's weight. This claim has a little more truth to it. The level of service is based on the physician's services. The more services he performs, the higher his reimbursement is. But taking a patient's weight isn't a medical procedure. A more realistic example would be a physician ordering and reviewing laboratory tests. And physicians often practice what is called 'defensive medicine' in the current system, which requires them to investigate virtually all conditions to ensure he does not miss something. If he does miss something, he can be sued for it. But, there are controls in place, and they become stronger every day to prevent unnecessary tests from being performed. Look into medical necessity for more information.
The article goes on to make more scary and mostly groundless claims, such as the different coding languages requiring different degree tracks (absurd), and different professional organizations (there are two with any relevance in the US, and which is relevant is mostly a matter of locality). And the reason the AAPC numbers are up is because they are expanding
outside the US. Oh, and the AMA does NOT levy a licensing fee on billing companies for use of CPT.
The article does make a good point that organizations should be required to make their bills more decipherable to laymen. But I personally don't think that is realistic in most cases. The way providers are reimbursed is incredibly complicated. Having people who have no idea what a realistic charge is trying to argue about each line item on a bill does not do any good.
The article also says that the coding information for individual bills is treated as a trade secret by organizations. That is patently false. Patients have absolute access to their bills as they are submitted to their insurance company including all codes. If the providers in that case did not submit the bill to the payor (in this case, the patient) with that information, she would not be obligated to pay it. On the other hand, the charge master IS a trade secret. It includes the pricing for all supplies and services for an organization. Individual payors do not need that information, nor should they have it.
As for the claim that "Multiple legal requests to review Wickizer’s chart and complete bill — with its coding elucidated — were refused", the payor must make that request. This is legally protected information. If the provider had released that information without consent from the patient, they could have been sued and liable for fines from the OIG.
As for the claim that "Twenty-five percent of United States hospital spending — the single most expensive sector in our health care system — is related to administrative costs, “including salaries for staff who handle coding and billing,” according to a study by the Commonwealth Fund.", that is grossly misleading. Medical billing and coding generally constitutes less than 5% of total expenses for healthcare facilities. The rest of administrative costs would include Quality Improvement, Administration, Utilization Review, Information Systems, Legal, HR, and other related activities. Billing and coding usually not even considered an administrative service. It is considered an ancillary service.
The article goes on and on, making false allegation after allegation. It is honestly disgusting, and it tries to scapegoat the ridiculous cost of care on a system that actually limits costs by allowing insurance companies and public payors to negotiate for individual services, instead of the even worse system that existed before the fee for service system was instituted.
Honestly, you absolutely need to be wary of what you read about on the internet. This article is such a hit job it is disgusting. The author paints a picture of healthcare providers as uncaring and greedy, doing everything they can to exploit a patient. While there may be a few bad actors in the system, they are very rare, with extensive systems in place designed to catch them. If you want to know why your bills are so high, you would best look elsewhere. I've posted about what measures could be taken that would actually reduce costs in the past.