Price
transparency is the novel idea that prices are shared with the consumer, before
the purchase. When this happens, we can more easily shop, compare prices,
and save money. As millions of people do this, healthcare providers
must respond with better value in order to earn our business, and everyone
benefits. In part due to the rising popularity of high-deductible HSA
plans, price transparency is exploding in many areas of healthcare.
Here’s where you may be able to save some money.
How
to Save Money on Minor Medical Expenses
Like
me, you’ve probably had the experience of going in for a doctor’s
appointment, only to sit in the waiting room for an hour before being moved
to the examination room. And then to sit there for another 30 minutes
before seeing the doctor. The last time this happened to me, I saw the
doctor for about 10 minutes, and my bill was $153.
But
fortunately for the consumer, the inconvenience and high cost of routine doctor
visits is disappearing. The number of retail clinics that are offering
no-appointment convenience and competitive prices is exploding.
Wal-mart
recently announced plans for several hundred new clinics at its stores.
Walgreens, which typically charges walk-in patients between $59 and $74 at
its clinics, is planning on opening over 2000 in-store medical clinics.
And other competitors like RediClinic and MinuteClinic are also providing
many of the same services as the doctor’s office, with more convenience
and at a lower price.
Unlike
with most conventional doctor’s offices, these clinics offer complete
price transparency. Most have websites with prices posted for examinations,
vaccinations, and other services, and offer weekend and evening hours.
For non-emergency medical services, the value these clinics provide is hard
to beat.
Price
Transparency for Prescription Drugs
A
few years ago, Wal-mart started offering generic drugs for $4 each, and competitors
such as Target, K-Mart, and most of the major pharmaceutical chains soon followed.
Before then, when a drug’s patent expired pharmacies would charge as
they liked for the generic version, often marking it up 4000% or more.
But
everything has now changed, and most retailers compete hard on generic pricing.
Prices for brand name drugs though, can still vary considerably. Most
people still don’t price compare, and pharmacies take advantage of this
fact. So you should always do some comparison-shopping before purchasing
any new prescription.
One
tool you may want to check out is www.PharmacyChecker.com.
This website will give an instant price comparison on any drug you want to
look up. It was interesting to see that the Costco price for Lopressor
was $1/pill more than the least expensive option.
Pricing
for Other Medical Procedures
It
is a little more difficult to do comparison-shopping for minor surgeries and
other medical procedures, but that too is changing. A number of websites
have recently popped up to try to provide pricing for medical procedures,
some offering better information than others.
One
site that can give you a good idea of what a medical service should cost can
be found at http://www.costhelper.com/cost/health/health-personal-care.html.
Here you’ll find articles that cover what should be included, and how
to get a fair price.
HealthcareBlueBook
will provide what they call a “fair price”, based on the zip code
where you are receiving the services. They also have a printable detailed
pricing agreement that you can use as a “contract”, when you find
a physician that will give you the price you want.
Google
“Subimo Healthcare Advisor”, and you’ll find a similar service
from Anthem Blue Cross Blue Shield. There you’ll find typical
in-Network and Out-of-Network price ranges.
Having
an example of what might be considered a “fair price” for the
service will help you get the best value possible. Do not be afraid to be
proactive, to compare prices, and to ask for a discount. Make sure you
tell the provider about any PPO network, and if you’ll be paying cash
at the time service is received.
Pricing
for Other Medical Procedures
Medical
care can be extremely expensive, which is why it is essential to carry health
insurance to cover catastrophic expenses. But many routine services
can be had much less expensively than most people think, with just a little
extra effort.
Exploding
healthcare cost is a very serious issue, and will continue to be so even if
a healthcare reform bill passes. The most immediate solution is to increase
price transparency and competition among providers. By being a proactive
consumer, you will be doing your part to help everybody.
To your health and wealth,
Wiley
Long
President - HSA
for America
P.S. –Next month we'll talk about funding your health savings account.
