Becomes the price the government will pay. That is not the price insurance companies pay. And not the price an individual would pay.
The government pays pennies on the dollar of the commercial rates paid by insurance carriers. Cash patients pay the most, which is outrageous. There are no miles of red-tape in their case, and they should demand to pay less than commercial for that very reason.
This whole crooked practice done by hospitals and other providers is called "Cost shifting" where insured and cash patients AGAIN subsidize "free healthcare".
It should be banned as it is a fraudulent practice which preys on honest people who pay their bills.