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11 months agoNo, it’s expensive because the value it provides.
They’re positioning it based on the length of hospital stay it prevents. In that perspective, this is an absolute bargain. For the most part, they’re selling insurance that $1.4k is far cheaper than even one additional night in the hospital. Insurance is willing to pay because it saves them loads of money. For uninsured and underinsured, it sounds like they’re basically not charging.
It’s generally a myth that cost to produce has anything to do with market prices.