Is this for real? Questions about Health Insurance

Is this for real?  Questions about Health Insurance

I got a statement from my health insurance company the other day, a report of what my health care costs were for 2017. 

Background:  I am 66 years old, on Medicare and paying $134 per month for coverage.  Last year I had HealthNet for my doctor appointments and such, with no premium.  I don’t make much money so I have free prescription coverage through Medicare.  That means my total health insurance cost per month is $134.00

During 2017 I had a colonoscopy, a mammogram, an MRI, one (minor) outpatient surgery by my OB/GYN oncologist, several doctor appointments and some lab work.  No illnesses, not even a serious cold, and no prescriptions (except for the colonoscopy prep - yuck.) 

The statement said that my medical costs for 2017 were as follows:

Amount billed by medical providers $27,560.71

Amount approved by insurer $. 4,036.19

Amount paid by insurer $. 3,668.96

My share $.   335.00

So, what I want to know is - what about the $23,524 that wasn’t paid by either my insurance company or me?  Do all doctors and hospitals and labs, etc. overcharge by that much knowing they’re going to receive such a small amount from the insurance company?  

And, if I didn’t have insurance, would I have been responsible for that entire amount?   Never mind.  I already know the answer to that one.  :( 

I know at least one woman who has health insurance through her employer and can’t afford an MRI of her lower spine because it would cost her $2,000 out of pocket.  In December I had the same procedure at a cost to me of $215.    There is something seriously wrong with this picture.

Mind you, I don’t know much about health insurance.  I don’t even really understand my coverage, or the difference between Part A and B and C and whatever.  When I have questions or problems I contact my insurance agent, who does understand all the things that confuse me.  

But I do think that there is something seriously broken in our health care system if someone who is really pretty healthy had medical bills that exceeded my annual salary - and because of my insurance coverage less than 1/4 of the billed amount actually had to be paid.  I mean, how is that even possible?  What if I had been really sick?  Or been in an accident? 

And what about that $23,524 that neither the insurance company nor I had to pay?  Are those legitimate charges that go unpaid or just seriously inflated so they will get what they actually should charge everyone from the insurance companies?