Fixing Healthcare’s Pricing Disconnect

In our latest podcast episode, we sat down with Korb Matosich, co-founder of Asserta Health. Korb and his team are laser-focused on fixing a key aspect of healthcare: the payment system.

We dive into why the healthcare payment model has failed to serve patients, employers, and even providers—and how innovative solutions like cash payment models are revolutionizing the way we pay for care.

The Problem with Networks 

Korb breaks down the opaque nature of the traditional healthcare network. He highlights how networks, originally designed to provide access to providers at discounted rates, have evolved into systems that now drive up costs. Rather than helping consumers, these networks contribute to ever-increasing healthcare expenses, leaving patients and employers to foot the bill.

In Korb's words, “Healthcare payments—it’s a train wreck.” He explains that networks promise discounts but hide the actual price tags behind a complicated and opaque system. The result? Patients often find themselves paying inflated prices while thinking they're getting a deal.

The Cash Pay Revolution

Korb and his team believe there’s a better way—cash payments. The idea may seem old-fashioned, but it’s proving to be a potent solution in today’s health landscape. Cash payment models give patients and employers the transparency they need to understand the true costs of care and make informed decisions. As Korb shares, this model not only helps contain costs but also provides a much smoother experience when integrated with primary care partners, like BowTie.

Why Employers Have Been Slow to Adopt Cash Pay?  

One of the key topics covered in the episode is why more employers haven’t jumped on board with cash payment models. Korb shares that many companies are resistant to change, even when faced with unsustainable healthcare costs. Employers have grown "addicted" to the logos of traditional PPO networks, despite the growing evidence that these networks are inflating costs without providing additional value.

However, employers who embrace cash payment strategies often see dramatic cost reductions while still maintaining access to high-quality care. Korb encourages companies to consider this shift as a fiduciary responsibility, particularly in light of growing legal pressures for employers to better manage health plan spending.

Click here to listen to the full episode.