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I always view the initial billed amount as the MSRP for a really shady industry.

While it’s often 2x-3x the allowed amount, I’ve even seen it closer to 20x-40x one — an amount for a simple outpatient procedure the would lead to financial ruin if it had to be paid in full.

I really don’t understand why there is any math in the initial amounts.

Why don’t they just bill $1M for every single item and then see what they get?



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