In order to do so they establish networks of physicians and hospitals and pharmacies and negotiate set prices for the services and goods they will bill the insurance company for. It controls their costs and allows them to gauge their risk and price their product accordingly. I, like all consumers, want to get the best possible service for the lowest possible prices. In order to do so I will prefer to use doctors and hospitals and pharmacies that are in my insurance company network because they tell me ahead of time what I can expect to pay for medical care and doctors visits.
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Ah there lies the rub. If providers provide the same price network or not, then healthcare would be affordable, as well as competitive. As a provider, I would find this most attractive.
Are you saying that every industry in the country should also do that? Sell their products for the same price under all circumstances? No discounts for volume customers. No wholesale pricing. Just one price regardless of customer?