Let
Them Compete for Your Business
Since
the advent of employer-sponsored health insurance during
World War II, the pricing and quality of medical services
has been shrouded in mystery. As the real price for
computers, organic
food, big-screen TV's, and just about everything else
has continued to drop (including health services where there
is not third a party payor, such as laser eye surgery, contact
lenses, over the counter medication), the price of healthcare
has continued to rise. But that is finally beginning
to change and you, fellow HSA-owners, are the reason.
To
gain a competitive advantage, healthcare providers have
traditionally attempted to grow local market share in an
attempt to extract higher payments from insurance companies.
But since HSA owners have the ability to accumulate unspent
funds and invest them tax-free, those of us with an HSA
have a strong incentive to avoid unnecessary care, and to
be more cost conscious when we seek treatment.
There
are now billions of dollars in health savings accounts,
and healthcare providers want at that money. And since
you control it (instead of the insurance company), the only
way for the provider or retailer to get that money is to
offer you high quality care at a price you are willing to
pay. And dozens of companies are doing just that.
The
Market Responds
One
obvious response to the consumer-driven healthcare movement
is the proliferation of quick-service medical clinics.
These clinics, which require no appointment and typically
charge less than $50, offer a low-cost way to diagnose and
treat strep throat, bronchitis, pink eye, and other common
ailments. MinuteClinic operates dozens of locations
in Target, Cub Foods, and CVS Pharmacy stores. Wal-mart,
which currently has 75 in-store clinics in 12 states, is
forecasting more than 6,600 in-store medical clinics will
be open in retail stores within 5 years.
Diagnostic
labs, which have traditionally sold their services to physician's
offices, are now offering tests directly to the public at
prices often 70% less than you would pay at a doctor's office.
With most you can order the test online, go give blood,
and get your results in a couple days.
Companies
are even providing self-testing services and devices which
can enable you to avoid going to the doctor when minor medical
events occur. One of the most common reasons kids
see a doctor is because of a possible ear infection.
For about $50 you can buy an EarCheck Middle Ear Monitor.
This uses a sonar to test for fluid behind the eardrum,
which may indicate an infection. The QuickVue Strep
Test, which costs less than $4 per test in a pack of 25,
can quickly help you determine if your child has a strep
infection, which would require a doctor's visit, from a
common viral infection, which would not.
Demand
Price Transparency
HSAs
reward personal responsibility in three ways: 1) they reward
you with tax-breaks for putting money aside to cover future
medical expenses; 2) they reward you for taking care of
your health by enabling you to grow your account; and 3)
they reward you for being a cost-conscious and discerning
consumer.
So
be a discerning consumer, and spend your money wisely.
Remember that the doctors and healthcare providers you see
work for you. If you don't get the quality of service
or a fair price, take your business elsewhere. Here
are some common-sense suggestions to make sure you do get
a good price:
-
Ask how much it will cost, before you buy. There
is nothing else that you buy without knowing the price
up front, so don't feel intimidated to ask your doctor
the same.
-
Review your bill before paying it. You might be
shocked how often extra charges are "accidentally"
tacked on to hospital bills.
-
Ask for a cash discount. To avoid the hassles
of filing for insurance and trying to collect past-due
charges, most physicians will gladly offer a cash discount
if you ask.
-
Explain that you will be paying out of your own pocket.
When a doctor is prescribing tests or writing prescriptions,
he or she is rarely taking cost into consideration.
The American Journal of Preventive Medicine recently
reported that up to $63 billion in medically unnecessary
tests are ordered every year.
-
Vow never to pay list fees. Doctors and hospitals
routinely discount their services to insurance companies
and PPO organizations. As a cash-paying customer,
you should get the best price available.
HSA
for America Member Benefits
I
believe that our role at HSA for
America is more than simply helping you find
the best value on a health insurance plan and an HSA.
I believe we can also help you become a wiser healthcare
consumer. So I am pleased to announce our new Additional
Benefits page.
As
we've grown, we have been able to negotiate special discounted
rates on several products and services. On this page you'll
find access to:
- low-cost
prescription drugs
- discounted
fees on lab tests
- medical
bill review services
- health
reimbursement arrangements
- and
more!
There
is no charge for many of these benefits, so take advantage
of them. As we continue to add more, I'll be sure
to keep you informed.
Conclusion
For
many years, a small group of health economists and other
policy-makers pushed for a more market-based approach to
healthcare. They correctly argued that healthcare
was like any other market and that if you put a true price
on health care services and let the market function, costs
could be controlled. We are now beginning to see this
happen.
Our
healthcare system is the best in the world. It is
a dynamic and complex work in progress, which can only get
better as the consumer gets involved. So be savvy
about how you spend your healthcare dollar. And watch
those unspent funds in your HSA continue to grow.
