I know this to be true. Ezra Klien with a little help form John Edwards (yes, that John Edwards) explains why.
I know from personal experience, everything costs more when you don't have any money.
The same thing is happening along insured/uninsured lines with healthcare. I look at the statements from my health insurance company and am amazed at the huge discounts they get from healthcare providers. I always think to myself how backwards this seems. I mean, I have health coverage but get a huge cost break. If I were uninsured, I would not only owe the potion the insurer paid but the whole large initial billing, no discount. So, the people who can least afford the full price, the uninsured, are the ones paying the most.
I understand that insurance companies hold great sway in negotiating reduced prices and all that, but the whole system is ass-backward.