Actually I've seen the opposite. They bill the insurance companies at a much higher rate than if you pay cash without insurance. You don't pay what the insurance company is billed for of course (that's what the insurance is for). But yeah, it's a racket at any rate.The prices being charged are coming from the healthcare provider. It has everything to do with them (or the people running their company). Why should a healthcare provider charge $1,000 to someone without insurance, but only $100 if you have insurance? What if your electric company did this?