What Do You Know About Costs

How to Improve Price Transparency in the Healthcare System

Effective programs and service delivery is possible through price transparency Being transparent about prices improves the experience of patients in the healthcare system When patients know wh at amount to pay upfront, they will be more than willing to pay. This helps in reduction of the amount of care that remains uncompensated Patients need to be well informed on the amount to pay and by what time This will help patients make an informed decision when choosing healthcare providers.

Most insurance providers and healthcare facilities are striving hard to improve price transparency in services delivered Transparency increases the rate of success in providing quality services Scarcity of information on pricing results in cost of care This is why there is a push for price transparency that has been going on for many years Many people are left in the dark when they seek in-patient care as they don’t know how much they will get charged. Healthcare providers can make cost conscious decisions with price transparency and patients can also choose which healthcare facility best suits them.

The health care system cannot be functional if people cannot compare the
pricing with other services as they don’t know the exact value of the purchase There are changes that can be seen especially with the pressure mounted on providers, insurers and drug makers to provide pricing and better drugs The cost of healthcare is higher than the rate of inflation rising the need for patients to shop for healthcare services There are alternative payment methods that require providers to get information from doctors on what the cost of ordering certain tests

It is tough for a provider to come up with accurate cost of a service before knowing the standard price Prices differ in thousands of dollars in hospitals that are in the same locality. The cost of treatment may not have any relation with the amount offered by the insurance provider This is how many people find themselves with insufficient funds yet they thought the amount will get covered by the insurance company

Price transparency in the healthcare system will enable patients to identify which hospitals they can access based on what they can afford There are times that physicians don’t even know the cost of services they provide.

In addition, it gets complicated when the patients don’t even know the amount covered by the insurance companies. The estimates tend to vary greatly if a patient goes for treatment and another underlying condition is discovered It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices Major healthcare plan use a cost estimator tool to give patients a cost estimate.