I am one of the guilty parties. I have set pricing, negotiated managed care contracts and dealt with supplies within the hospital setting for 20 years. Without getting into a large amount of detail, charges are a product of managed care and mean nothing. Insurers want high charges so they can create more "value" through added perceived savings. The increased charges are also creating a need for insurance. Providers have fallen into the game.

Unfortunately, healthcare has become a unique market where consumers don't pay for their consumption. Most of insurance is paid by employers. Most of the cost of service is paid by insurance and the hospital pays for the products ordered and used by the physicians. Despite what many believe, most physicians are independent of the hospital and hospitals cannot compensate physicians for referrals or utilization patterns.

Healthcare needs to change, but the solution is not with insurance, buy accountability.