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How Does Your Doctor Get Paid?

How exactly does your doctor get paid? Is it just your copay? What if you don’t have a copay? Read on to learn where your money is going.

When a doctor graduates from medical school, there are some steps they need to take to become a practicing physician. Once all of that has been completed and he or she is all setup ready to go, what happens? How does your doctor get paid?

We’ll tell you.

Your doctor reviews a bunch of different health insurance contracts and decides which networks he or she will participate in. Each insurance company negotiates with the physician on the rates (the amount the insurance company will pay a physician for a given service).

For example:
Different insurance companies pay different amounts. Let’s use an X-ray in this example.

  • Insurance company A will pay $13.
  • Insurance company B will pay $20.
  • Insurance company C will pay $17.

The doctor signs a contract saying that no matter how much it costs him, he will accept that amount as full payment for that service.

Now, we’ll walk you through an example below…

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