Talk about pricing disparity!!

Brad Mackey · **Posted:** Thu May 27, 2004 7:47 pm

Ok, so I've been driving around with a creeping crack in the windscreen of my 2001 Sable. Finally figured enough is enough, so decided to get it replaced.

I wanted to stay local (Fuquay-Varina), asked a couple of neighbors and they tell me to use ol' Fuquay Glass Co. Been in bi'ness for 40-odd years, nice folks, cheap, etc. So I call the guy.

"Fuquay Glass...."
"Yeah. Look, I need a new windshield in my 2001 Sable. How much..."
"Sedan or Wagon...?"
"SEE-dan."
"2-door or FourDoor?"
"Uhhh... they only came in 4-door."
Silence...

"Hellooooo????"....
"This an IN-surance job or cash?"
"Uhhh... Credit Card. I got a $500 deductible, so I'm paying anyhow. You take credit cards?"
"Yep.."
More silence.
"Well, we don't stock them kind, but we can get 'em..."
"OK, How much? Drive-away..."

Lots of clicking in the background....

"Looks like $460.53"
"You sure?"
"Yep. That's what it says here..."
"Any discounts for. like, old folks? AARP? Sam's Club Member?"
"Nope."
"OK. Uhhh.... I'll call you back." JEEEEEZZZZ!!! Sounds high!

So I call "The Glass Doctor", who I guess are everywhere. It's a franchise, I guess.
Bottom Line: $189.97 Installed in my driveway, including Tax. Same damn windshield that was in the car. I-friggin'-dentical!

Now, how in hell can there be such a disparity in the pricing of the same products? Guess shopping around for some stuff can be beneficial.

Recommendation: Don't use Fuquay Glass Company, but the Bar-B-Que out here is awsome!

Marvin McBride · **Posted:** Thu May 27, 2004 9:04 pm

I've replaced 2 windshields in the last 12 months - the Explorer and the Spec Miata. I also found prices ranging from about $175 to almost $500 for what appears to be the same glass, same warranty, etc. It is interesting that there is no price difference if you take it to them vs. them coming to you! The biggest difference is whether you're paying for it out of pocket or it's an insurance claim. Now in health insurance, that is blatant , prosecutable fraud, but in auto insurance it appears to be the usual. Definately worth shopping around - the last 2 times, I've gotten the best prices from GlassMasters on New Hope Rd in Raleigh - the Miata was cheaper (including labor) than a windshield by itself from a salvage yard. Caveat emptor!

Charlie Guthrie · **Joined:** Thu Aug 28, 2003 8:14 pm **Posts:** 832

Shopping around for glass has ALWAYS been a good idea. When we shopped for CoROLLa windshield, we had several used windshields priced at 100 on up. Triumph Autoglass offered to do the repair on the driveway for $205. The glass was $95 if we picked it up. Other quotes were in the $300-$400 range. The bad news is that the high priced guys were going to need several days to get to us because so they are so busy. Aparrantly many people are paying a lot for their glass.
Charlie G

Patrick Wellenius · **Posted:** Fri May 28, 2004 9:13 am

Marvin McBride wrote:

It is interesting that there is no price difference if you take it to them vs. them coming to you! The biggest difference is whether you're paying for it out of pocket or it's an insurance claim. Now in health insurance, that is blatant , prosecutable fraud, but in auto insurance it appears to be the usual.

I'm pretty sure insurance companies have deals with doctors/hospitals just as they seem to with auto repair places. The insurance agents always have lists of "preferred" or "premium" places for you to take you car and since they send the service joints plenty of business, they get a lower cost. I'm willing to bet it works just the same in many hospitals and doctors' offices. Many insurance companies will offer a "recommended" list of people to see and by no means is it out of the goodness of their own greedy heart.

Marvin McBride · **Posted:** Fri May 28, 2004 11:23 am

Way off topic, but here goes. In today's world, when a health insurer has a contract with a provider (doctor, hospital, etc.) - this is what is called a "participating provider"- the provider agrees to a certain fee; the insurer pays their portion, and the patient is responsible for their portion (the copay, deductible, and/or coinsurance), but the provider cannot charge the patient more than the contractual fee. This is the basis for all the "managed" insurance products - the "in-network" portion of PPO and POS plans, and HMO plans. If a patient goes "out of network" in a PPO or POS plan, and any time in an indemnity plan, the provider can bill whatever they like - the insurer pays their portion of what they think the bill ought to be (there's a whole 'nuther discussion here about billed charges vs. "usual, customary and reasonable" charges), and the patient gets stuck not just with "their portion" - the copay, deductible, and/or coinsurance- but with the difference between what the insurer thinks the bill ought to be and what the provider charged - aka "balance billing." You may be able to negotiate with the provider to decrease this amount, but the insurer is not involved here at all - you are on your own.

In the healthcare world, a participating provider accepts a contract fee lower than his usual billed fee in return for a higher volume of business and a greater liklihood of being paid. Therefore, when insurance is involved rather than paying out of pocket, the overall cost is lower.

In the auto world (glass, body shop, etc.), it looks like whenever insurance is involved rather than paying out of pocket, the overall cost is higher. I suppose it's possible that there are contracts between the shops and the auto insurer that pay less than billed charges, but I don't know. I do know that if a healthcare provider offered to waive the deductible (as is common practice with the glass shops), that would be considered fraud (a federal offense if Medicare is involved). The overall picture certainly appears to be that the charges are inflated when insurance is involved - which ultimately increases our insurance premiums.

THSCC Forums

Talk about pricing disparity!!

Who is online