The Ranter

EP03: Your Hospital Bill Is Wrong. Here's Why That's by Design.

• Markus Grant • Season 1 • Episode 3

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0:00 | 18:02

Hospital bills are wrong on purpose. Before a doctor sees you, propensity-to-pay software scores what you can afford. The chargemaster sets a list price nobody negotiates down except insurers, so the people billed the full number are the roughly 27 million uninsured. When the bill can't be paid, the debt gets sold for one to four cents on the dollar and chased for the full amount.

Markus Grant traces the trap from the first billing code to the collection call, and hands you the one sentence that forces out the itemized bill.

Key receipts:
- About 27 million: uninsured Americans, the only people billed the full chargemaster price
- $2.30: charity care per $100 of spending at nonprofit hospitals, against $4.10 at government hospitals, while nonprofits collect $37.4 billion a year in tax breaks
- 80 percent: nonprofit hospitals that give back less than their tax break is worth
- $23 million: UCHealth's DOJ settlement over emergency-room upcoding, after more than 15,000 patient lawsuits filed under collection-company names
- 32.99 percent: CareCredit's current standard APR, charged back to the purchase date if a promo balance remains
- $39.35: a line item for a mother holding her own baby (NPR, 2016)

Receipts and case file: theranter.com/case-file/the-billing-trap
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