Ridiculousness #1: How much for that labwork?!?

This is out of hand. You really need to read your Explanation of Benefits. It's amazing how we have no clue about the prices of the services and procedures we get. If we did, we would seriously rethink the amount of care we get. Sometimes I think it's inherent in the medical industry's business plan to keep the costs of services hidden to the consumer. Through my struggles with my medical care, I've started to read every last explanation of benefits statement sent to me.

I'll share the latest. I went to the doctor to get some standard bloodwork. Apparently what happens is that the doctor's office will bill the insurance company the "price" of the labwork. Then the insurance company will pay the amount they are willing to pay according to the contract they have with the doctor's office. It's like the doctor's office is saying: "Hey, pay us a gazillion dollars, even though we have a contract saying you are only going to pay $1." Then the insurance company says, "Yeah, nice try, here's your dollar." Whereas if this bill went to an uninsured person, they would have to pay the gazillion dollars.

"Laura, you are being dramatic again!"

Actually, the difference in price if audacious.

Vocabulary:
Provider = the medical facility or doctor providing, and billing for, the service
Total charges = what the doctor is billing for the service or procedure.
Allowed amount = the amount the insurance company and provider have contractually agreed to
"Less non-allowed amount" = the amount the insurance company knocks off the billed price according to the contracted prices

So here we go:
LabCorp of America Holdings
Total charges: $314.00
Less non-allowed amount: $296.67
Total paid/allowed amount: $17.33

The items billed were as follows:
Laboratory procedure: $129 (allowed amount $7.15)
Laboratory procedure: $96 (allowed amount $5.31)
Laboratory procedure: $89 (allowed amount $4.87)

Let me break this down for you: If you were an uninsured person walking into the doctor's office (in this case Comprehensive Primary Care in Chevy Chase, MD) you would be billed $314.00 for these 3 labs (drawing blood and having it processed). Yet, if you are a big insurance company, you only pay $17.33.

Why? I don't understand if the labwork actually costs very little and charging the insurance $17.33 actually allows them a small profit on these procedures? Or is the insurance company a big bully and doesn't allow the doctor's office to make any money off this procedure, and thus forces them to make a shilling off the common man? This does not help me understand the actual costs of medical care.