Cost of Your Health Care   

  
   We've always assumed that government clout is 
responsible for our comparatively low Medicare costs 
(good for senior voters), while people in private plans get stuck with the difference. Monthly reports from our Medicare Advantage plan show what each provider charged for a service. Medicare usually allows about 60 percent, give or take, and our plan will pay a portion of that.

   A new Rand Corp. study finds that private insurers on average pay more than twice what Medicare allows for the same services. Differences vary widely across the country.

   What surprised us - Kaiser Health News claims Medicare allows the estimated cost, while most private sector plans pay what hospitals and other providers can charge. 

   Who knew? And how do they estimate "true" costs? 

   Much depends on the market. A specialty service in an area without competition can charge more than it might otherwise. Private plans vary from 1-1/2 to three times what Medicare pays. Seniors on Medicare pay more than $100/month for coverage (premiums), regardless of individual usage of the system. 

   Then there are co-pays and deductibles, depending on whether one is covered in basic Medicare or a Medicare Advantage plan. 

   Complicated.

   We're talking billions of dollars difference between Medicare and private plans, which affects 156 million Americans under 65 who pay for services and premiums. 

   Rand's authors recommend that providers publish their prices, and that employers demand lower costs accordingly. But, they say, there is no guarantee of improvement.

   "From and efficiency standpoint, the current system isn't working." 

       Jimmy