The Case for Cash – When Health Insurance Isn’t

Why in the world would you want to pay cash for health care instead of using your insurance?  Well, there are several reasons.  Let’s explore a few.

Probably the best reason for paying your doctor directly is lower insurance premiums.  These days, the trend is to go to the doctor (or the doc-in-a-box) for every little ailment or sniffle.  The justification for doing so is “I pay alot for my insurance.  I’m going to use it!”  In a backward sort of way, that might make sense.  And at the same time one person is using that logic, so are most other insured individuals and families.  Because insurance premiums are based on how much you use it, the more you (and everyone else) use you it, the higher your rates will eventually be.

Privacy.  Unknown to most Americans is an organization commonly referred to as the MIB.  No.  Not Will Smith and Tommie Lee Jones, the “Men In Black”.  But, the Medical Information Bureau.  At least 15 million Americans have files with the MIB that contains a variety of information ranging from prescription drugs you may have taken to different therapies you may have received.  Future insurers and employers could have access to this information just as they do with credit reports.  With estimates of erroneous credit reports as high as 40%, the potential for misuse or abuse of your medical history is very real.  This information is generally reported when an insurance claim is filed by your doctor’s office.

It can be cheaper.  It’s costly for the doctor’s office to file insurance.  Many have simply stopped offering the service in order to reduce their cost of doing business.  Instead of building practices around what insurance will cover, large numbers of practitioners from chiropractors to dentists, even medical doctors, are offering lower fees to patients that pay cash at the time of service or who prepay for their care.

Finally, better care.  By paying your doctor cash, you eliminate the temptation for doctors to offer “extras” just because your insurance will pay for it.  By paying cash, you make sure you get just what you need and nothing more.

To summarize, paying your doctor at the time of service or even prepaying for care will lower your insurance premiums, lower the cost of care, protect your privacy and ensure that you get the best care possible and only the care you need.  Ask you doctor about lower fees for paying cash or prepaid care plans.