We really do have a long way to close the information gap in healthcare. I was struck the other day by all the discussions around gas prices and the energy (ba dum pum) a group of friends were putting into finding the best price for a gallon of gas. They new the cost to the penny, where to buy it, and how to find out when it changed.
Contrast that with our perceptions and lack of real knowledge about the cost of healthcare. Those of you that are healthy probably calculate the cost by what gets deducted from your check every month for insurance premiums. Others believe the cost of healthcare is reflected by a prescription paid for on a regular basis. Neither of these ultimately comes close.
Most consumers have no idea. TriZetto's recent Cross-Constituent Survey found that while most consumers were concerned about the cost of healthcare, nearly two-thirds admitted that they didn't know what it cost them. I am pretty sure that if I asked 10 adults in my neighborhood what the price of gas was, all of them could get within 10%.
How much does my family's healthcare cost in one year? Go ahead and guess.
Then consider...
- The health plan premiums deducted from your payroll. Despite the fact that this is written right on your payroll stub I bet you don't know it by heart.
- The health plan premiums paid by your employer. Only 1 in 10 knew that this was annually higher than $1,000 individual / $5,000 family - in actuality this is $3,600 individual/$7,400-$9,400 family (Kaiser) While there's plenty of talk about provider transparency, the fact that most people will never know the true cost of their insurance unless they go on COBRA ("$1,300 a month?!") is actually the fault of employers.
- Don't forget your Medicare insurance. While this is probably just a tax you'll never benefit from, its intention is to presumably fund your future healthcare needs.
- The actual cost of care and your responsibility for that care (copays, deductibles, co-insurance).
- Prevention and wellness programs (healthclub memberships, weightloss programs, etc.)
Another intersting finding from the survey was that while provider accounts receivables were climbing rapidly and healthcare costs are supposedly on everyone's mind, 68 percent of providers said infrequently or never esimated the amounts patience owed prior to providing care.
Picture this in your mind this the next time you fill up your tank: Many consumers are pulling into the gas station not knowing the price or how big their gas tank is, and they won't know how much it costs until after they've filed the tank. (Oh, and you won't get your bill for a few weeks.)
Until the right incentives are in place for payers, providers, and employer benefit managers, much more data and access to data is needed before consumers are going to "get it".
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