The Need for Price Transparency in the Healthcare System
Price transparency is important in making effective programs and in service delivery This way the experience of patients in healthcare system will improve greatly Majority of patients will be more than willing to pay as long as they get informed earlier on the amount expexted This will get rid of delivery of care without getting compensation. Patients need to be well informed on the amount to pay and by what time This way patients can decide on what services to seek
There is a lot of effort from insurance companies and healthcare providers to improve price transparency. Transparency increases the rate of success in providing quality services High cost of care is usually blamed on the scarcity of information regarding price There has been a push for improvement on price transparency for many years When patients go for in-patient treatment, most of the times they have no idea what they are expected to pay Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers to make cost conscious decisions
The healthcare system is considered to be dysfunctional when patients cannot compare prices with other service providers 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 payment plans that need healthcare providers to provide a cost before conducting tests
If providers don’t know the standard price of treatment, it can be difficult to come up with an accurate figure. Prices differ in thousands of dollars in hospitals that are in the same locality. It is not uncommon for hospital to charge more than what is provided by insurance companies. This is how many people find themselves with insufficient funds yet they thought the amount will get covered by the insurance company
Price transparency will give patients an opportunity to choose healthcare facilities that 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. If a patient goes for treatment and it leads to discovery of another condition, the estimates may differ greatly. It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices However there is some progress as major health plans have a cost estimator tool for insured patients to find a service that can provide a cost estimate