Why, in simple terms, we need MASSIVE HEALTH CARE OVERHAUL

Yes, this illustrates the problem overall.
Anytime a third party pays for something prices will be inflated!

 

What you illustrate is another problem with the "reform" we are getting. It mainly addresses insurance and not care.

 

Absolutely.

 

Just about everything is Third Party.

Creator - Wholesaler / Retailer - Consumer

 

You are misunderstanding what I have said.
A consumer pays for merchandise from a creator, wholesaler or retailer.
I am talking about when someone other than a consumer pays for his services, its the same way with government spending somebody else's money.

 

You wouldn't be getting the same prices without the Third Parties discounts based on their volume or group.

While you may be paying more than their negotiated rates b/c of admin fees / profit you are more than likely paying less than a person walking in off the street paying retail.

 

Yes and no.
I think it depends on the circumstances but it is cheaper to pay for things with cash versus credit.
Cash discounts are given all the time for just that, Cash is also cheaper for the receivers business, no red tape.

 

This is true but I don't know of many people paying 10k+ cash for their hospitalization etc. And I'm fairly sure that is what people are complaining about and not doctors visit.

 

I would tend to agree. Most pproviders will give a 15-20 percent discount off of gross charges to a cash paying consumer.

The contractual discounts from an insurerer are generally more like 25-30% of gross charges.

 

And why are people complaining about the prices of hospitalization, etc?
Your government plays a big role in failed policies or no policy, possibly too much regulation in some areas.
A lot of it comes down to lawsuits against doctors, illegals or anyone without insurance receiving free health care at any hospital of their choice.
Fraud in medicare and medicaid, etc.
Its a lot like that $100 toilet we heard about 20 years.
There is no free lunch, someone has to pay for all these free-bees and it will always fall back on customers.