Ya'll are saying the hospitals are screwing the insurance companies, but I've always looked at it differently. The insurance companies are strong arming the hospitals by telling them "if you want to be on our list of providers, you'll take what we pay you and be happy about it or our customers will have to take their illnesses somewhere else". I bet Bamaeyedoc will tell you that is essentially how it happens to doctors also.

Of course the original bill from the hospital is inflated because they know they are going to have to settle for a lesser amount anyhow.

At least this was keeping insurance rates tolerable. Until Obama decided he had a better idea.