
5 Things About Price Shopping for Healthcare
A free-market system with competition should lead to reduced prices and savings-theoretically. In the case of healthcare, being able to shop around for the best priced service or product not only isn’t easy, but isn't always feasible.
A free-market system with competition should lead to reduced prices and savings—theoretically. In the case of healthcare, being able to shop around for the best priced service or product not only isn’t easy, but isn’t always feasible.
Here are 5 aspects regarding the ability to shop around for the best priced products and services in healthcare.
1. Price shopping for medications can yield savings
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They found geographic differences, too, with medications being less expensive in lower-income areas. Furthermore, prices were lowest at independent pharmacies and when purchased using online coupons compared with grocery, big-box, or chain drug stores.
2. Having access to prices doesn’t necessarily lead to reduced spending
Just because something is available to people, doesn’t mean they will use it, however. That’s what the California Public Employees’ Retirement System (CalPERS) found when
Despite this tool being available, only 12% of employees used it and the people who did use it to search for prices of lab tests or office visits did not receive lower priced care. Only the few individuals receiving imaging services saw savings.
3. Financial incentives need to encourage shopping around
Situations where consumers have become more price conscious and more likely to shop around for better prices include the use of HDHPs and the implementation of reference pricing.
In cases of HDHPs, consumers are more price conscious because they have more “skin in the game.” Researchers believe that HDHPs could reduce annual health spending by $57 billion if half of the country were enrolled in them. However, there are concerns that HDHPs could lead to people skipping out on needed services that ultimately lead to issues that increase costs down the road.
Employers who have implemented reference pricing for certain healthcare services have been able to see savings. As AJMC.com contributor Jon B. Christianson, PhD,
4. Barriers prevent shopping from becoming a reality
Interviews with patients, in a
5. Few people actually seek price information to begin with
More importantly, people simply are not used to shopping around for the best price when it comes to their healthcare. Studies have found that patients need reminders and education about using price transparency tools when shopping for healthcare. A
The low rate of price shopping does not stem from interest. The reality is that patients have difficulty obtaining the information and often “provider loyalty and trust in their providers’ referrals typically trumped willingness to switch providers and out-of-pocket price data,” the June AJMC® study found.
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