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Insurance and Doctors, a data point

Had to take my son to urgent care today for a minor dog bite (he is fine) but had an interesting experience when it came to filling out the paperwork for insurance. The urgent care facility said that we could have 50% off of the bill if we paid now by credit card or cash. I have had similar offers of 15% or 25% for paying cash but nothing as drastic as 50% before.

Is it really the case that 50% of their costs are related to handling insurance claims? Even assuming they were giving a discount because they get paid right away, I don’t see how they get to a 50% discount.

Anyone have any insight?

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