Beginning July 1, 2004, California Assembly Bill 1672 requires most hospitals to disclose the list price for their services. Referred to as the "chargemaster," the lists show the prices for thousands of medicines and medical procedures done at California hospitals. The prices for medical services vary dramatically, e.g., a chest x-ray cost $120.90 at Scripps Memorial Hospital in La Jolla, CA and $790 at Sutter General Hospital in San Francisco, CA. The chargemaster shows the retail price for services. Government (Medicare and Medicaid) and Health Insurance Companies and HMOs (Anthem Blue Cross of California, Blue Shield of California, Pacificare, Health Net, etc.) negotiate steep discounts to these retail prices. Accordingly, those without health insurance pay significantly more than those with health insurance. As a December 27, 2004 article in the Wall Street Journal, California Hospitals Open Books, Showing Huge Price Differences, stated: "Virtually every business marks up the wholesale price of supplies and services. But in the hospital business... list prices are usually charged only to the uninsured patients. Health plans negotiate big discounts and the government essentially dictates what it will pay." The California law requires that hospitals show their list of charges to anyone who requests to see it. So, if you find yourself without health insurance and facing hospital admission, you may want to do some price shopping with the chargemaster. Another, less expensive option is to enroll in a California health insurance plan before you need it. |
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California Health Insurance |
Group Health Insurance in California |
Health Savings Accounts | |
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