Crazy bills for coronavirus tests

Two friends, Jimmy and Pam, were going on a kayaking trip with other friends. For peace of mind, they decided to get tested for the coronavirus prior to their trip. They both got drive-through tests at Austin Emergency Center in Austin, Texas. Jimmy paid $199 cash just to avoid insurance hassles. Pam, who was using insurance, was charged $6,408 for her test. (Hers was later negotiated down to $1,128, but she was still responsible for $928 of that. After a television show told her story, her bill was dropped entirely.)

Another man who was tested at the same place got a bill for $5,649, of which his insurance plan paid $4,914. He’d been assured he’d be tested for only the coronavirus, but his bill showed he’d also been screened for Legionnaires’ disease, herpes, enterovirus, and others. (He also got out of that bill.)

During the pandemic, there’s been a wide variation in the amount providers bill for the same basic diagnostic test, with some charging $27 and others $2,315, for example—even if they’re conducted at the same location. The differences reflect different insurers’ market clout. A large insurer can demand lower prices, while small insurers have less negotiating power.

So, not only are tests notoriously unreliable and may take weeks for results, the charges attached to them are ridiculous. The discrepancies arise from the fact that the government does not regulate health care prices. What a mess.

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