Brief tutorial on hospital charges: Probably pretty obvious stuff, but since I often collect on medical bills, this article in the Palladium-Item was of some interest. Basically, in response to a reader question, the author explains that:
1. Hospital charges $1,000 for a procedure;
2. Medicare has a contract with the Hospital so its members only pay a total of $600, including Medicare pays and patient pays.
3. Private insurance has a contract where it only pays $900 for the procedure.
4. Uninsured are charged full price and have little negotiating power to reduce it. Who knows how much Hospital will actually collect.