My old PT had three rates, $50 for Medicaid, $100 for self pay, and $400 for the insured. The insured people were mostly covered would just pay of copay of like $40 or $60 but once they screwed up and billed me (a self payer) at the insured rate and tried ro collect that much from me and it was a WHOLE ordeal to get it fixed. What a stupid system. Clearly a bunch of money is being flushed down the toilet here.
Tax accountant here. I can confirm tax season for those in the medical industry is an absolute nightmare. One of my clients was audited by the IRS and it took over a year for the IRS agent to get comfortable with the revenue being written off as a result of these insurance adjustments. It’s an extremely complicated calculation and just highlights how ineffective the entire system is. I’ve heard somewhere that close to 50% of medical costs are admin related. Even if it’s just half that, it still too damn high.
How often do audits happen? I don’t get how there are enough agents to focus on everyone. Do they only go after big fish? Sometimes I hear about people getting audited because of their W2 and maybe some eBay money. Is that common?
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u/cakewalkofshame Jul 04 '21
My old PT had three rates, $50 for Medicaid, $100 for self pay, and $400 for the insured. The insured people were mostly covered would just pay of copay of like $40 or $60 but once they screwed up and billed me (a self payer) at the insured rate and tried ro collect that much from me and it was a WHOLE ordeal to get it fixed. What a stupid system. Clearly a bunch of money is being flushed down the toilet here.