Understanding Hospital Billing Markups

Hospitals charge you 700 dollars for a simple IV bag of saltwater that costs them

2 dollars to make. This markup exists because of a broken billing system where hospitals negotiate

rates with insurance companies, and uninsured patients end up paying inflated list prices.

The actual saline solution is cheap, but you're paying for facility fees, administration,

nursing time, and equipment overhead bundled into that single charge. Insurance companies

negotiate these prices down significantly, sometimes paying only 50 to 100 dollars for the same bag.

If you ever receive a hospital bill, always ask for an itemized statement and negotiate.

Many hospitals have financial assistance programs that can reduce or eliminate these charges.