Why I Still Need My Health Insurance Company

This year I switched from traditional health insurance to a health savings account with insurance to cover the big stuff.   I write the check on the first $5,000 of health care costs, my insurance kicks in after that.

So far I’m pleased.  But, I still need my insurance company because I get services at the same cost its costs, which is a significant discount to list price and probably closer to the true price of the service.

I need this benefit to pay the insurance company rate because I’m bidding for health care services against a majority of people whose health care is paid by a third party, so they have no incentive to get the best deal for the money.

The funny thing I’ve learned about the health care industry since I’ve started writing the checks is that most service providers don’t know their price.  They can’t tell you how much that extra bag of IV fluid will cost.  They haven’t had to.  Nobody cared.  Someone else was paying.