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Health insurance is expensive these days any way you look at it.  There's no way of getting around the fact that you're going to pay more for health care than you did even a few years ago.

I've seen a lot of advice on how to save money on health care costs to counter-act some of these rising costs.  One of the items that shows up on almost every list is to negotiate your bill.  In other words, try to get the doctor's office to accept less than what they bill you for.

This sounds great, but I'm wondering how effective it really is.

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In most cases when you have insurance, the provider bills at their standard rate, but agrees to take less of a rate when they participate with an insurance provider.  The mindset behind this is that by participating in a plan, they'll ensure themselves business by offering their services to the insurance companies subscriber base.

Using a recent example, my wife had an epidural for her recent delivery of our second child.  The anesthesiologists standard billing was around $1,300.  But, the negotiated rate for that service was around $550, meaning that they had to essentially write off $750.  Our plan calls for a 10% co-pay, so the insurance company sent them a check for $495 and we had to cover the remaining $55.

It seems to me that they are not going negotiate with me on that $55 because they, in essence, have already been negotiated with by the insurance plan.

I can see trying to work with them had they been an out-of-network provider that we wanted to work with, in which case there would have been no negotiated rate and no pay-out by the insurance company.  In that case, we would have received a bill for the entire $1,300 and I could see them working with someone in that situation.  But not in our situation.

Am I off here or should I be trying to negotiate even these co-pays?  Has anybody had any success negotiating with their providers and if so, what was your insurance situation?