You might assume that hospitals would prefer patients with insurance instead of patients who self-pay because insurance companies generally pay for at least some of the services provided (depending on the level of insurance coverage). But a recent study shows that insured patients actually cost hospitals more than self-paying patients.
We’ve previously discussed how, thanks to your Health Access Benefit, you can be an effective cash pay patient and save money. This new research suggests that your local providers may benefit from your Health Access Benefit as well. Here’s how.
Research Shows Insured Patients Cost More
The Healthcare Cost and Utilization Project is a government initiative that has tracked nationwide hospital costs since 2000. HealthCareInsider analyzed the data the project has collected (currently through 2018) and shared their findings. Their biggest takeaway: Insured patients cost hospitals more than self-pay patients.
This is a relatively recent shift, too. In 2001, inpatient hospital costs for both insured and self-pay patients were nearly equal. But by 2018, hospital costs were an average of $1,734 more for insured patients than self-pay patients.
Here’s what else HealthCareInsider found:
- For all ten of the major inpatient hospitalization conditions (stroke, diabetes, heart attack, childbirth, etc.) they considered, insured patients cost hospitals more than self-pay patients.
- The biggest difference was for heart attack patients. Insured patients cost hospitals an average of $22,599, while self-pay patients only cost hospitals an average of $6,191. That’s a difference of $16,408, or 365%!
- Childbirth is another example of a wide margin for hospital costs. Insured mothers cost hospitals approximately $13,802, while self-pay patients cost hospitals $2,129.
In considering why these differences exist, a CEO of a third party claims company noted that the cost discrepancy between insured patients and self-pay patients may be the “hospitals’ tiered charge system, which assesses private insurers higher charges than they do cash pay customers, particularly those that negotiate in advance.”
Regardless, this research shows that insurance is driving up costs for your local providers. That can, in turn, make your costs higher, especially if you have insurance. Fortunately, your Health Access Benefit isn’t insurance—and that’s a good thing!
The Difference Between HAS and Insurance
Your Health Access Benefit gives you more control over your health care costs. It's different from any health benefit you’ve had before.
With traditional insurance, you don’t know how much your hospital visit or procedure will cost until your bill arrives weeks later. As we’ve just seen, it’s in part because the insured patients cost hospitals more—which means there is more to process and a greater chance that some of those costs are going to get passed on to you.
But as a cash pay patient, you’re in control of your health care spending! Unlike traditional insurance, you don’t have to deal with middlemen or surprise charges. Instead, you will pay for the medical services directly—without an insurance company. Ultimately, this helps you find the lowest rates possible.
As the research shows, being a cash pay patient helps you save money on medical bills so that you can have more financial freedom. Plus, you save even more money by not having expensive monthly insurance premiums.
In fact, being a cash pay patient is hassle-free compared to insurance. When you visit a medical office and they ask for your insurance card, just say, “I am cash pay.” Then you will be provided with out-of-pocket payment options, and possibly a discount too!
Learn more about how to be a cash pay patient here.
Why HAS is Better Than Traditional Insurance
Not only will your Health Access Benefit help you avoid the insurance middleman and save you money at the hospital, but it can put thousands of dollars back into your pockets! It’s a total solution to health care:
- Gain direct access to your own primary care provider for no additional cost.
- Avoid the hassle of network restrictions; pick your preferred providers.
- Save even more money on prescriptions.
- Get reimbursed for preventive care.
- As a cash pay patient, you don’t pay for the services that you don’t need.
As a member of Health Access Solutions and cash pay patient, you save more money and have more control over your spending. That’s why we say we’re at the cutting-edge of health care!