Price Transparency: Why Is It Important? (Part 2 of 5)

Recent developments explain why price transparency in health care is now important:

1)      Consumers: Consumers are spending more out of their own pocket for health care, which means they want to know how much it costs. AON Hewitt (November 2014) predicted that employees will pay an average of $2,487 in out-of-pocket costs in 2015.

2)      Investors: CB Insights (December 2013) reported that $400 million was invested in price transparency deals between 2010 and 2013, which means lots of new players in the space.

3)      Employers: Insurance costs continue to rise, which means employers want their employees to make more informed (i.e., less expensive) health care choices.

4)      Feds: ACA’s Section 2718(e) requires hospitals to “make public…a list of the hospital’s standard charges for items and services…,” which means frankly little for now.

5)      Carriers: In “Six Healthcare Megatrends Caused by Obamacare,” Zeke Emanuel predicts the end of insurance companies as we know them, which means they need new ways to stay relevant.

6)      Providers: Patients trust their doctors and hospitals for information, which means providers have an opportunity to play an important role.

So who is doing price transparency well? Check back for Part 3 of this series to learn more.