Yeah, US health Care is stupid.
Here's basically how it works:
A procedure actually costs $100 to administer, you know, for staff and electricity and all that good stuff. Joe Withinsurance pays $100 and Joe Noinsurance pays $100. Good times.
The insurance company gets together with the health care provider and negotiates a contract that says the procedure costs $1,000, but that the insurance company gets a 90% discount and the health care provider will bill insurance $100. The insurance salesperson goes back to the office and celebrates the 90% savings they just negotiated with the health care provider.
Joe Withinsurance still pays $100. Joe Noinsurance now gets stuck paying $1,000 because he doesn't "qualify" for the "discount."