Quote:I somewhat agree with you regarding how the cost has gone up, but let's be clear about it.  I went in for a physical a couple of years ago and paid cash.  It cost me roughly $60, and that was for a complete physical.  Now getting blood work done at a lab cost a bit more, but it wasn't an outrageous amount.

 

The basic way that it works as an example for a physical... if you have "insurance" you pay your $10 co-pay or whatever, then the doctor's office bills the insurance company $125.  People will immediately blame the doctors for "milking the insurance company", but that's not the case.  The doctor's office staff has to get paid for their time dealing with the insurance company.  The insurance company has to pay their staff, and so on...  Both the doctor's office and the insurance company have to make their money as well so something that costs $60 more than doubles if "insurance" is involved.  That's why if you have "insurance" a pill might cost $50.  If you pay cash that pill might cost $10 or less.

 

Here is another way to look at it.  You're a mechanic.  Say 1 hour of your shop time is $60.  A customer comes in for a routine tune-up, and it takes you an hour or less, you bill the customer for 1 hour of shop time.  The customer pays you in cash and you can immediately deposit that money into your bank account.  However, say the customer has "insurance" or a "maintenance plan".  In order for you to fill out the paperwork, contact the "insurance" company and wait a couple of days to get your money, well that costs you time and so that's why you bill the "insurance" company more money.