The combination of the high cost of medical care and the lack of emergency savings among 40 percent of the entire US population has resulted in medical bills being the number one cause of US bankruptcies [1]. This is especially true among the lower class. In fact, studies have showcased that out-of-pocket medical costs cause nearly 26 percent of personal bankruptcies among households with low income [2]. There are multiple problems associated with pricing in the healthcare industry. Not only are out-of-pocket expenses far too high, but the lack of healthcare price transparency has really become a major issue. Below, we will be going over how price transparency can help solve a lot of the issues with rising healthcare costs.
How Price Transparency Can Help:
1. People Will Be More Informed
Not having accurate and transparent pricing when considering medical care can cause you to make bad decisions. The fact is, you need to have the necessary information about the costs associated with the medical care you are deciding on. As many as 67% of people polled felt there wasn’t enough detail and transparency as it related to their medical care costs [3].
2. Everyone Wants It
It can be extremely rare to find an issue that both parties agree on. There is bipartisan support to require healthcare providers to disclose accurate pricing information. In fact, 88 percent of surveyed individuals were in favor of enhancing price transparency in the marketplace through a government mandate [3].
3. It Will Likely Lower Healthcare Costs
When people are fully aware of the costs of medical treatment and what exactly they are paying for, they are going to be much more selective. They will be able to make better and more informed decisions which 46 percent of the population believe will lower healthcare costs. However, even if it does the opposite and raise the costs, an overwhelming 65 percent of people would still be in favor of greater transparency even if it led to a short term increase in healthcare prices.
4. Salaries Aren’t Rising Along With Medical Costs
One of the main reasons there should be greater transparency in the medical industry has to do with the exponential increase in costs in recent years. The fact is, salary and wage increases are not sustaining pace with the rising health care costs with premiums increasing by nearly 54 percent with wages rising at only 26 percent since 2009 [4].
5. Public Pressure
Having higher and more transparent prices will place a greater amount of public pressure directly onto the providers that refuse to lower their costs. With the costs laid out for consumers to see, they would be forced to slash their prices to remain more competitive. By being able to hide their true pricing, these providers have been able to trick consumers into signing up for overpriced plans. With more information available, providers would have the public pressure that would cause them to have to make their offerings much more competitive based on the industry standards.
6. Benefits For Employers
Employers will be able to ensure that they are choosing the best insurance and the most cost-effective insurance for their workforce. Without necessary transparency, employers have a lack of information just like consumers. Therefore, they are unable to assess the insurance plan and compare and contrast with other options available to choose from.
At the end of the day, there is a significant need in the healthcare industry for dramatic reform. However, something as simple as boosting the transparency within the industry can pay off in a big way. For now, there is Tripment.com. Tripment.com is looking to change the industry by giving consumers the ability to search for top doctors with transparent prices. By using the marketplace, you will be able to search for various doctors in different specialties or even by the procedure you are getting. This will enable you to find a doctor that is committed to offering transparency in their pricing. Thus, you will be able to make a much more informed decision regarding which doctor to go with for your medical procedure. Until the healthcare industry is forced to change, you can’t rely on it changing. Luckily, Tripment.com is doing its best to give consumers a better way to shop in a healthcare marketplace with greater transparency.
References:
[1] https://www.thebalance.com/medical-bankruptcy-statistics-4154729
[2] https://www.scholars.northwestern.edu/en/publications/
[3] https://harvardharrispoll.com/wp-content/uploads/2019/06/HHP_May19_vF.pdf?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz–NgSdTYggGUP4tWyR2IEQ7i8TCg1s3DcHuQyhErIgkX3KFUi3SFgl9OZKm4-JUOOi9tmMQ
[4] https://www.kff.org/health-costs/press-release/
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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