A DEEPER EXPLANATION
In 2005, PricewaterhouseCoopers' (PWC) Health Research Institute authored a report entitled "Acts of Charity; Charity care strategies for hospitals in a changing landscape." The data in their report shows that it is not uncommon for an uninsured person, even with a discount, to pay more for services than a privately insured patient or a Medicare patient.
The chart to the right, taken from the report, was created to demonstrate the pricing structure for medical services. It shows that while the list price for an appendectomy is $18,229 that a privately insured patient ($6,174) or a patient covered by Medicare ($4,865) would pay considerably less than an uninsured patient ($8,143). This is due to discounts negotiated with the medical provider by the insurance companies and Medicare.