So this is by design isn't it? The fact that insurance covers everything and the hospitals do not have to eat up any costs begs for this to happen. If the majority of customers (patients) pay out of their pocket then the hospitals would be incetivized to make themselves attractive to patients. Else why the hell do they care? In fact they mark up prices multiple times to offset any unforeseen costs of eating up costs as well. There is no incentive in price transparency, no incentive to compete among hospitals. Honestly if you are covered then as an individual you don't care either. I am not sure what the solution is here.
Serious question: why do you think that hospitals don't have to eat costs?
It's a loaded question in the sense that I've been at various hospitals and they always talk about their budget shortfall which is in part due to non-reimbursed care provided to those who cannot pay and/or have no insurance. But it's also not a loaded question in the sense that I want to understand why people would think hospitals don't eat costs.
Oops, I was thinking something and typed something else entirely. I meant to say that since the insured pay for the uninsured (through marked up prices), the hospitals are incentivized to jack up prices.
