Medical lab costs out of control?

If you have standard, co-pay based health insurance then you probably don’t care what the cost of a lab test, MRI, or other diagnostic procedure is. For those of us on high deductible plans, health share plans, or just plain uninsured, we not only care, we’re often shocked both at the price as well as the wide price variability between providers. My wife recently needed to have a CT scan performed. We were on vacation so we called the local hospital: $8000. Shocked, we called another hospital in the neighboring town: $3000. We decided maybe we could wait until we got back home: $2000. $2000 was starting to feel more reasonable but still expensive just to get a picture of the inside of your chest taken. It’s not like we were going to be able to hang it on the wall or use it for Xmas cards next year. That’s when we discovered MDSave. The best way to describe their service is that it’s the Groupon of medical procedures. You go to their site, search on the procedure you need performed along with your location, and they provide a list of service providers in your area along with their price. You select the provider you want to use and purchase the procedure. You then call the provider and schedule your appointment, letting them know you have a voucher from MDSave. It’s incredibly simple and the price we paid for that CT scan? $250. Cha-ching.

So what’s the catch? Must be some guy with some sketchy equipment operating out of his garage right? Nope. It’s the same major providers in your area that your doctor would refer you to. Prior to purchasing the CT scan on MDSave we called the provider to make sure it wasn’t a scam. The lady in the billing department confirmed the price and added that she didn’t know why everyone doesn’t use MDSave! MDSave themselves have been in business for 14 years so not exactly a fly by night operation.

So how does MDSave and their marketplace providers make money? MDSave makes their money by adding a small markup to the price they negotiate with providers. Providers make money through increased business from the MDSave marketplace as well as saving money by not having to deal with insurance companies and their associated rejections. And because MDSave pays the providers up front, providers get their money immediately rather than 6 months down the line. And no need to hire debt collectors!

But wait a minute, if I’m paying cash (or leveraging MDSave’s financing options) rather than going through my insurance, how will it get credited against my deductible? You can still file the procedure against your insurance or health share provider. Just make sure you get an itemized bill with the medical codes on them from your provider. Your insurance company or health share provider will then have a form or online mechanism for filing the bill. Easy Peasy. And you can of course still use HSA accounts to pay for the MDSave voucher.

Example

Procedure	National Average Cost	MDsave Average Cost	Total Savings
Colonoscopy	$4,469	$2,000	55% Savings ($2,469 saved)
MRI with Contrast	$1,444	$738	49% Savings ($706 saved)
CT Scan with Contrast	$716	$368	49% Savings ($348 saved)

Note: Actual savings and prices vary based on your geographic region and specific provider

The Bottom Line

You do not have to accept overpriced medical bills as a fact of life. MDsave empowers you to shop around for the best deal without sacrificing quality. Before you book your next medical appointment, take 5 minutes to check out MDSave. It could easily save you thousands of dollars.

Smart Share has no affiliation with MDSave and does not receive any type of compensation from them.