If you have insurance and go to a doctor, well, you use your insurance, right? For most people, this is a no-brainer. But did you know that you might just end up saving money if you pay cash?
This article will look at the ‘cash pay’ vs. insurance issue and discuss why cash pay may be your best option.
What is Cash Pay?
Cash pay refers to any payment option used to cover a medical cost other than insurance. It can literally be taken as a means of using cash to cover medical bills, but its meaning can be expanded to include other self-pay options.
Self-pay methods often come with a discount. But if you pay in cash, you may get even more of a discount.
Why is Cash Pay Better?
Cash pay is typically reserved for people that don’t have insurance. However, it can also be provided to people that offer to go outside their insurance and pay the doctor directly. Or, you may decide not to tell your doctor you have insurance and pay with cash.
Most medical offices offer discounts to patients that pay cash. The amount of the discount will vary from office to office.
Many offices will do a discount of around 30%. However, some discounts are as little as 25%, while others can be as high as 90%.
Keep in mind that you won’t always save money with cash pay. It depends on how much your copay and deductible are as well as how much of a discount the doctor is offering. You should also be aware that insurance may be the best option for people that are dealing with serious ongoing medical issues.
But in most cases, cash pay will be a money-saving solution.
Cash Pay and Deductibles
Many insurance plans don’t even kick in until after you have reached your deductible. For example, you may be required to spend a certain amount on medical expenses each year before your insurance starts covering costs. If your payment plan is set up in this way, you will save a considerable amount of money with a cash pay option.
But keep in mind that your cash pay will not go towards your insurance deductible. So, if you are looking to hit that deductible, cash pay may not be your best choice.
Why Doctors Discount for Cash Pay
There are several reasons why doctors will provide discounts for cash pay. Here are some to consider:
- Good Customer Service-Doctors know that patients appreciate the option of getting discounted services, especially if they are unable to afford insurance. Offering a cash pay option promotes loyalty.
- More Convenient- Insurance can be a hassle for doctors. Reimbursements can be low, and insurance also requires a lot of paperwork which takes time and money. Many doctors would rather take a cash payment than deal with insurance.
Why are Healthcare Deductibles So High?
In 2021, the American Rescue Plan Act went into effect temporarily removing the income cap for eligibility for U.S. government subsidies for 2021 and 2022. This enabled 13 million Americans participating in Obamacare federal and state health insurance plans who weren’t previously eligible to qualify for health insurance subsidies.
Now the 2-year ARPA exemption is expiring, and income caps are no longer in place. This leaves millions of Americans facing regular healthcare industry marketplace pricing. Experts are expecting premiums to go up about 50% on average, but it will be more for some.
And rising deductibles aren’t the only issue insured people are dealing with. Employers are also looking at increased healthcare costs that they may pass on to their employees. And there are certain types of Medicare that will be increasing copay rates in the coming year.
How UBERDOC Can Help
UBERDOC is a great way to access self-pay and cash-pay options throughout the medical industry. Our platform connects people with qualified doctors representing a wide range of specialties. We run completely on a self-pay basis eliminating insurance referrals and all the hassles that come with it.
And our direct-pay options aren’t the only reason to love our service. We also allow patients to schedule directly through our platform to avoid lengthy hold times. Our exclusive appointment strategy ensures you will see a doctor in 1-3 days.
Most appointments are just $250.
If insurance costs are getting you down, cash pay is a great alternative. It eliminates the hassle of insurance, and it could just save you money. UBERDOC provides easy, reliable cash-pay options you can trust. Visit our website to find out more about what we have to offer.
