Have you ever looked at a medical bill and discovered that there were different rates applied to services and tests provided? The health insurance industry has a huge effect upon the cost of private health care. This can prove to be beneficial or frustrating to any individual as treatment is sought and costs are determined.

If you ask around among health care facilities and doctors you will typically discover that there are varying costs for the same exact procedure, test or care provided. The applied cost is usually determined by how the patient is paying. Most offices and facilities have a base fee they charge. This fee will vary depending on several factors including if the patient has health insurance, what type of health insurance the patient has, and if the patient does not have insurance, the means of payment.

Insurance companies create lists of preferred providers. These are doctors or other private health care providers that are contracted with them. The health insurance company agrees to pay a specific usually extremely reduced fee for specific services provided. The private health care providers contract with the health insurance companies, because they realize that their patients are going to want to use preferred providers in order to keep their costs down. By contracting with these insurance companies the private health care provider is able to maintain a much larger patient basis than without the agreement. But, by contracting with these health insurance companies, the health care providers agree to charge the reduced rate set by the insurance company. These rates may vary from company to company so two insured people may still pay different prices for the same care provided.

A patient without health insurance will usually pay a substantially higher price for private health care. They may easily pay more than ninety percent more for the same services that an insured patient receives. This is because they are charged the original base rate without any health insurance company restrictions applied. It may seem unfair, but the patient without insurance also has not had to pay the monthly premiums that the insured patient has paid.

Finally, many private health care providers will offer a discount to patients who can pay cash for the treatment received. This discount may not be equivalent to the health insurance company discount, but it can make treatment more affordable for those patients that do not have health insurance.

If you require medical services from a private health care provider and do not have health insurance, ask about their payment options and request a cash discount. Just be certain to have the cash on hand to pay for the treatment at the time the services are provided.